Taiwan Semiconductor Manufacturing Co’s (TSMC) value soared by NT$1 trillion (US$30 billion) on Thursday amid a global chip stock frenzy fuelled by artificial intelligence (AI), which has become a key disruptive force in a wide range of industries.
The world’s biggest contract chip maker’s Taipei-listed shares jumped 5.3 per cent to NT$899, hitting their highest listing in 1994. The surge lifted its market capitalisation to over NT$23 trillion, pushing the local benchmark Taiex Index to a record high as well.
Leading mainland chip companies also joined the party. China’s largest chip maker, Semiconductor Manufacturing International Corp, saw its Hong Kong-listed shares jump 5.4 per cent to HK$18.02, a five-month high. Its peer Hua Hong Semiconductor surged 8.1 per cent to HK$22.60.
TSMC, which counts Apple, Nvidia and SK Hynix among its major customers, has been one of the biggest beneficiaries of the AI craze. The company’s stock has surged over 50 per cent this year on the back of a 32 per cent jump in 2023. It now ranks among the world’s most valuable companies alongside Meta Platforms and Warren Buffett’s Berkshire Hathaway, according to Bloomberg data.
TSMC also said it plans to buy back 3.25 million shares at a price of between NT$598 and NT$1,281 apiece from June 6 to August 5 to offset the dilutive effect of shares issued through its employee stock award programme.