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TSMC stock is nearly 3% down in the pre-market to trade at $50.60. The company just announced its intention to build and operate an advanced semiconductor factory in the United States.
The stock of Taiwan Semiconductor Mfg. Co. Ltd., that is known as just TSMC (NYSE: TSM), closed yesterday with a slight fall of 0.077%, after drastically rising within a short period. The rise occurred after the company announced its preparing to build a $12 billion chip factory in the United States, hence creating over 1600 jobs directly. However, today TSM stock is 2.88% down in the pre-market, trading at $50.60.
On the technical side of view, its market price is consolidating after recovering from the mid-Feb stock market crash. It is testing the upper border of the falling channel, whereby the breakout will see the price retest its all-time high, and possibly reach a new ATH.
Furthermore, the current market price of TSMC stock is trading near its previous 52 week high, which was recorded at $60.64, more than its 52 weeks low at $37.18. In the past year, TSMC stock has added 29.44%, however, it has lost slightly over 10% both in the past three months and since the calendar flipped.
It is an indication that its operations have been affected by the ongoing coronavirus crisis, which has disrupted most manufacturing supply chain networks globally. However, with Apple Inc (NASDAQ: AAPL), which is its major customer, preparing to unveil iPhone 12 with the latest technology, the figures might start changing with time.
The only unknown challenge remains the ongoing coronavirus, which presents an immediate threat to people and how they relate to one another. Essentially if a vaccine is approved in the next few months, then most businesses would be in a better position to estimate the extent of the coronavirus damage in their operations.
TSMC Stock Future Is Very Bright
With the future in chip technology very promising in the industry, TSMC company is rushing to place itself as the best in the market. Through a post on its official webpage, the Taiwan company announced its intention to build and operate an advanced semiconductor fab in the United States.
In addition, it confirmed that the deal is through a mutual understanding and commitment to supporting from the U.S. federal government and the state of Arizona.
“The facility will utilize TSMC’s 5-nanoconductor technology for semiconductor wafer fabrication,” TSMC said in a statement.
According to the post, the proposed factory is in a position of delivering 20,000 semiconductor wafers per month. Besides the 1,600 jobs created directly, the company will create thousands of indirect jobs in the semiconductor ecosystem.
The move by the company has been supported by U.S. lawmakers, who seem to compete with the Chinese counterparts to control critical tech companies in the world.
“This deal bolsters U.S. national security at a time when China is trying to dominate cutting-edge technology and control critical industries,” said Mike Pompeo, Secretary of State.
As a result, the TSMC shares are likely to benefit a lot from the deal, hence making the rise more vivid in the near future.