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TSMC rally maintains momentum

2018/01/23 15:54:00

Taipei, Jan. 23 (CNA) Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) continued to rally on Tuesday amid optimism over its prospects for the year.

Shares of TSMC, the most heavily weighted stock on Taiwan's stock exchange, rose 1.72 percent to close at the day's high of NT$266.00 (US$9.09).

The stock once again outperformed the Taiex, which ended up 0.19 percent at 11,253.11 with the help of TSMC's gains.

So far this year, TSMC shares have risen about 15.9 percent, pushing its market capitalization to NT$6.897 trillion, the highest ever for any listed company in Taiwan and up nearly NT$1 trillion from its NT$5.95 trillion level at the end of 2017.

TSMC shares have soared since the chipmaker said at an investor conference on Jan. 18 that its 2018 sales would rise 10-15 percent from a year earlier in U.S. dollar terms, beating a market estimate of a 5-10 percent increase.

The growth forecast was also above the 6-8 percent growth projected for the global semiconductor industry as a whole in 2018.

TSMC is expected to benefit from increasing demand for high-end chips because of the use of new technology applications, such as high performance computing and cryptocurrency transactions, which will offset a slowdown in the global smartphone market, analysts said.

Since the latest investor conference, TSMC shares have risen more than 7 percent, and several foreign brokerages have raised their target prices on TSMC shares to as high as NT$300.

Before Tuesday's gains, foreign institutional investors had registered a net buy of more than 110 million TSMC shares so far this year.

(By Chang Chien-chung and Frances Huang)
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