TAIWAN SEMICONDUCTOR ManUFACTURING today
Taiwan semiconductor production
- 52-week range
- $ 125.78
▼
$ 226.40
- Dividend yield
- 1.24%
- P/e ratio.
- 24.74
- Value is valuable
- $ 220.00
Taiwan semiconductor production NYSE: TSM makes mass investments in the United States. This step may be the greatest economic success for the Trump administration so far. The company in a semiconductor plans to invest another $ 100 billion in the country, where many of its key customers, such as NVIDIA, live NASDAQ: NVDA And an apple NASDAQ: AaplField
Most economic tests related to Trump’s tariffs were negative. This is not unreasonable, given that tariffs mean higher prices. Large TSMC investments show that tariff threats can be useful, especially for such strong economies as the United States.
TSMC expects that investments will create 40,000 new jobs in construction and add tens of thousands of highly paid technological jobs in the United States. However, for investors, the key question is how these investments affect the future leader of the semiconductor.
TSMC: Significant investments in the United States can cause significant dilution of marginal
Extended TSMC investments include “plans for three new manufacturing plants, two improved packaging facilities and a large team of research and development”. This adds to one fabric in Arizona, which is currently working, and two fabrics that are being built. Exact time scales for the construction of these facilities are unknown.
However, the company plans to create 40,000 jobs over the next four years. In the United States, the creation of a semiconductor FAB takes a little more than three years. This suggests that TSMC may begin the process of resolving and design for these plants next year. This process takes from 14 to 20 months, as soon as it begins. Thus, it is fair to say that TSMC may begin the construction of these plants within 26-32 months. Thus, TSMC will have to start thinking about how he will soon finance this big project.
Over the past 12 months, the company brought more than $ 26 billion free cash flow. It also ended in 2024 with about 74 billion dollars in cash and short -term investments. If he continued to generate the same amount of free cash flow, he will have $ 178 billion in cash and short -term investments in four years. TSMC will have to invest about 56% of this in order to reach $ 100 billion in four years. This is a lot of money, and most likely there will be significantly financial stress on TSMC.
In an interview with Taiwan Talks, Rocky Uuriankhai from Scitech Power Research made comments in this vein. He said that large investments will “spoil” the long -term 53% TSMC gross profit and 40% of net profit targets. Two months before this investment announcement, TSMC stated that she expects to dilute the margin from increasing its current foreign FABS from 2% to 3% over the next five years. These new investments can significantly increase this dilution of margins. Nevertheless, TSMC did not specifically say that she would make all these investments in the next four years. This gives the company the opportunity to expand this potential dilution over a longer period.
TSMC investments: key step to risk reduction
Despite the financial voltage of TSMC from these investments, this limits other risks. Investments are largely considered as a step to avoid tariffs in the amount of 25% to 100% for its products that are paid by President Trump.
TAIWAN SEMICONDUCTOR MARKETRANK ™ Analysis Analysis Analysis
- General market ™
- 82nd percentile
- Analyst rating
- Moderate purchase
- Breaking/disadvantage
- 26.3% growth
- Short level of interest
- Healthy
- The power of dividends
- Moderate
- Environmental assessment
- N/a
- Mood news
- 0.77
- Insider trade
- N/a
- Professe Earnings growth
- 19.89%
See full analysis
More importantly, the company also makes concessions to strengthen its relations with the Government of the United States. This is extremely important for the constant success of the company. For many years, the threat loomed in the fact that China could invade and take on Taiwan. This will have a destructive effect on business and reserves of TSMC.
It seems likely that TSMC has significantly strengthened the protection that it can receive from the United States from China. The Trump administration did not provide a guarantee of security Taiwan. Nevertheless, TSMC investments align interests. Most of the TSMC operations remain in Taiwan. These operations will have to continue to work smoothly so that the United States reap the economic and safe benefits of these investments.
TSMC investments can bring medium -term pain for long -term benefits
In general, TSMC investments are more reminiscent of the necessary evil than everything else. Most likely, it will be a financial voltage to the company in the medium term. However, this helps them to soften geopolitical and tariff risks. The financial influence of investments can surprise markets in the nearest quarters, which can exert a decreasing pressure on the shares. Nevertheless, the dominance of the company in the production of semiconductors remains undeniable, and this step helps to soften existential risk from China. In the long run, this adds to the perspective of TSMC, but investors should be careful about this name.
Before considering the Taiwanese production of semiconductors, you will want to hear this.
Marketbeat monitors the highest and most effective analysts with the most effective Wall Street analysts and promotions that they recommend to their customers daily. Marketbeat has identified five shares that leading analysts quietly whisper to their clients to buy now before a wider market is conquered … and the Taiwanese semiconductor production was not on the list.
While Taiwan Semiconductor Manuapacturn is currently a moderate purchase rating among analysts, analysts with the highest rating believe that these five promotions are better buying.
View five shares here
Trade of options not only for Wall Street Elite; This is an affordable strategy for those who are armed with proper knowledge. Think of options as strategic tools, with each tool intended for a specific financial task. Get this report to find out how trading in the options can help you use market volatility in your interests.
Get this free report