Taiwan manufacturing semi -conductors today
Taiwan manufacturing semiconductors
- 52 weeks
- 125.78 dollars
▼
226.40 dollars
- Profit
- 1.24 %
- P/E ratio.
- 24.74
- The target price
- $ 220.00
Taiwan manufacturing semiconductors Nyse: tsm It makes a huge investment in the United States. This step may be the biggest economic success for the Trump administration so far. The semiconductor company plans to invest another $ 100 billion in the country, having many of its main customers such as NVIDIA Nasdak: nvda And Apple Nasdak: Aapl.
Most of the economic analyzes surrounding Trump’s tariff policies were negative. This is not unjustified, given that the definitions mean high prices. TSMC’s large investment shows that customs tariff threats can be useful, especially for strong economies such as the United States.
TSMC expects investment Create 40,000 new building jobs And add tens of thousands of high -drive technology functions in the United States. However, for investors, the main question is how this investment affects the future of the semiconductor commander.
TSMC: A major American investment that can cause a large margin to reduce
The expanded investment of TSMC includes “plans for three new manufacturing factories, two advanced packaging facilities, and the main R&D team.” This adds to the Burundian Armed Forces in Arizona, which is currently operating and the second to be built. The exact schedule for building these facilities is unknown.
However, the company plans to create 40,000 building jobs in the next four years. In the United States, building semiconductor Fab It takes a little more than three years. This indicates that TSMC may start the process of permit and design for these plants next year. This process takes between 14 to 20 months as soon as it begins. Therefore, it is fair to say that TSMC may start building these plants within 26 to 32 months. Thus, TSMC will start thinking about how to finance this large project soon.
The company has produced more than $ 26 billion in free cash flow over the past 12 months. It also ended 2024 with about $ 74 billion in cash and short -term investments. If you continue to generate the same amount of free cash flow, it will contain $ 178 billion in cash and short -term investments in four years. TSMC will need to invest about 56 % of that to reach a sign of $ 100 billion in four years. This is a lot of money and it is likely to put a large amount of financial pressure on TSMC.
In an interview with Taiwan talksRocky Uriankhai made from Scitech Power Research in this vein. He stated that the large investment “messes” in the long term of TSMC 53 % total margin And 40 % net profit goals. Two months before this investment declaration, TSMC said it expects to reduce the margin from increasing existing armed forces abroad from 2 % to 3 % over the next five years. This new investment can significantly increase this margin mitigation. However, TSMC did not say specifically that it would make all these investments in the next four years. This gives the company an opportunity to expand this possible mitigation over a longer period.
TSMC Investment: A major move towards risk mitigating
Despite the financial stress that TSMC may feel from this investment, it reduces other risks. Investment is largely seen as a step to avoid definitions Between 25 % and 100 % On its products that President Trump floats.
Taiwan SemiDUCTOR MARKETRATRANK ™ stock analysis
- In general, Marketrank ™
- Celsius 82
- Analyst classification
- Moderate purchase
- The upward trend/negative side
- 26.3 % up
- The level of short attention
- correct
- Profit power
- moderate
- Environmental result
- us
- Feelings of news
- 0.77
- Trading from the inside
- us
- Bruges. Profit growth
- 19.89 %
See full analysis
More importantly, the company also provides concessions to unify its relationship with the United States government. This is very important for the company’s continuous success. A threat has been looming on the horizon for years that China may look forward to invading and handing over Taiwan. This will have devastating effects on TSMC business and shares.
It seems likely that TSMC has strengthened the protection that you can receive from the United States against China greatly. The Trump administration has not provided security guarantees to Taiwan. However, the TSMC investment corresponds to interests. Most TSMC operations remain in Taiwan. These operations will need to continue smoothly for the United States to reap the economic and security benefits of this investment.
TSMC investment can bring a long -term pain
In general, the TSMC investment appears to be more necessary evil than anything else. It is possible that you put financial pressure on the company in the middle of the period. However, it helps them relieve geopolitical and definition risks. The financial impact of investment may surprise the markets in the upcoming seasons, which may lead to low pressure on stocks. However, the company’s dominance in the manufacture of semiconductors is undeniable, and this step helps to reduce existential risks from China. In the long run, this adds to TSMC expectations, but investors must be careful with regard to this name.
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