Taiwan Semiconductor Manufacturing Company (TSMC), Apple Silicon supplier and the world’s leading chipmaker, is expanding production of advanced AI semiconductors to Japan in a major step toward geographic diversification. The initiative aims to meet rapidly growing demand for cutting-edge chips while mitigating geopolitical risks associated with its primary manufacturing base in Taiwan.
Joel South for 24/7 Wall St.:
The expansion directly benefits TSMC’s largest customers. NVIDIA, which relies on TSMC for AI GPU production, posted quarterly earnings growth of 66.7% year-over-year and maintains a $4.24 trillion market cap. Despite recent volatility, with shares down 6.6% year-to-date, the stock has gained 46.85% over the past year.
Apple, another major TSMC customer for iPhone and Mac chips, showed resilience with shares up 7.82% over the past week. The company’s $435.6 billion in trailing revenue and 18.3% year-over-year earnings growth reflect sustained demand for advanced semiconductors.
MacDailyNews Take: The more geographic diversification for Taiwan-based TSMC, the better.
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