Time: 2024-07-09
Taiwan Semiconductor Manufacturing Co. ( TSMC ) saw a pre - market boost on Monday after Morgan Stanley joined a growing list of brokers raising their price targets on the chipmaker ahead of its earnings report . In the U.S. , TSM shares were trading at 90.92 , a 3.77 % increase from its Friday close of 83.99 . Meanwhile , TSMCs shares in Taipei leaped as much as 4.5 % , pushing its year - to - date rally to over 75%.
TSMC 's customers have reportedly agreed to a raise in 3 nm chip supply pricing in exchange for the condition that the Taiwan giant keeps up with the semiconductor supply . With the AI frenzy in play , the companies within the supply chain are the ones to benefit massively from it , especially the semiconductor industry , since the demand has skyrocketed . According to Morgan Stanley , TSMC has reached an agreement with its customers , who have agreed to comply with higher semiconductor prices , given that the firm keeps up with the supply chain and fulfills orders on time.
With the rise in gross margins , the Taiwan semiconductor giant plans to spend big on expenditures , and given that the company has already started the development of the next - gen 2 nm process , TSMC will need to ramp up its investments . TSMC is set to initiate production of a small batch of 2 nm wafers by this year , and large - scale production will take effect by 2027 . The 3 nm process is expected to receive massive adoption from the markets , whether from Apple with its upcoming A18 Pro SoC or even NVIDIA with its next - gen " Rubin " architecture . Intel is also expected to leverage the 3 nm process technology for its upcoming Lunar Lake and Arrow Lake CPUs.
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