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Bloomberg Technology reports that the world’s biggest contract chip maker, Taiwan Semiconductor Manufacturing Company (TSMC), is enjoying record profits, with an increase of 32% in 2016, which is its highest ever level in relation to MSCI Inc.’s global technology stocks gauge.
So successful has TSMC been this year that the company is now responsible for 16% of Taiwan’s equity market value, which is the biggest percentage for the past 13 years.
Bloomberg says that while a general tech rally has helped TSMC achieve these record figures, TSMC is attracting investors due to strong demand for Apple’s iPhone 7, which is increasing demand for its processor chips. Samsung’s mounting problems since the recall of the Galaxy Note 7 have also helped TSMC, according to Sandy Mehta, chief executive officer of Value Investment Principals Ltd. “Samsung’s issues and the perceived benefit for Apple is surely creating some optimism. TSMC is the best in class. Valuations are not very high for TSMC, and rising estimates have led to investor optimism. The shares could still have upside.”
Source: TSMC Has Never Been So Dominant as Apple Orders Boost Profit
