(WSJ) Taiwan Semiconductor Manufacturing Co. is now the most valuable company in Asia, with a market cap of $600 billion, thanks to surging demand for semiconductors.
Following the continued demand for chips, TSMC announced a $40 billion-$44 billion capex for 2020, up from $30 billion in the last year.
TSMC’s rise to Asia’s most valuable stock also reflects the trade tensions between Beijing and the US, making chip makers in China find it difficult to catch up.
The Taiwanese chipmaker has found a fortune in the semiconductor industry and currently controls at least 90% of the most sophisticated chips in the world for products ranging from computers and iPhones to cars.
Thomas Wong, the founder of Optimas Capital Ltd, is bullish on TSMC, saying that its technology gap with peers is widening. Other analysts point out that the company’s growth is justified by its technology edge against rivals such as Intel Corp. and Samsung.
TSMC now ranks in position nine in the global ranking, with the latest jump happening after displacing Tencent Holdings Ltd., which has been facing heightened regulatory scrutiny from Beijing. Tencent’s current market value stands at $569 billion.
2330: TPE is down -1.84%.
