TSMC shares hit NT$600 on U.S. tech stocks' rally

03/29/2021 11:08 AM
To activate the text-to-speech service, please first agree to the privacy policy below.
CNA file photo
CNA file photo

Taipei, March 29 (CNA) Shares of Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, rose to NT$600 at one point Monday morning, with buying sparked by a rebound of big tech stocks on the United States markets Friday, dealers said.

Although TSMC came off the NT$600 high, it continued to drive the broader market, where the benchmark weighted index soared more than 100 points, dealers said.

As of 11:01 a.m., shares of TSMC, the most heavily weighted stock on the local market, had climbed 1.53 percent to NT$599.00 (US$20.94), off an earlier high of NT$600. The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), was up 186.96 points, or 1.15 percent, at 16,492.84.

Soon after the market opened, TSMC rose to NT$599.00 and then to the NT$600 level, where it encountered stiff technical resistance close to its 60-day moving average, dealers said. The stock, however, remained above its previous closing level, driving the Taiex upward, they said.

The buying in TSMC was triggered by a strong showing of its American depositary receipts (ADRs), which gained 5.53 percent on the U.S. markets Friday, dealers said.

The ADR gains pushed TSMC's market capitalization past the US$600 billion mark to US$604.49 billion, surpassing American Warren Buffett's Berkshire Hathaway (US$591.03 billion) and Elon Musk's Tesla (US593.87 billion) and rising to ninth place in the U.S.

Market analysts said TSMC remained fundamentally strong, maintaining its competitive lead in high-end technology development and securing large orders from international tech brands.

Earlier this month, TSMC reported NT$106.53 billion in consolidated sales, a record for February and a 14.1 percent increase from a year earlier. In the first two months of 2021, TSMC generated NT$233.28 billion in consolidated sales, up 18.4 percent year-on-year.

According to analysts, the company is highly likely to meet its first-quarter sales projection of US$12.7 billion to US$13.0 billion, given the strong global demand for emerging technologies such as 5G applications and high performance computing devices.

(By Chang Chien-chung and Frances Huang)


    We value your privacy.
    Focus Taiwan (CNA) uses tracking technologies to provide better reading experiences, but it also respects readers' privacy. Click here to find out more about Focus Taiwan's privacy policy. When you close this window, it means you agree with this policy.