From Nasdaq:

Taipei-listed shares of TSMC soared after the company projected more than 20% growth in 2024 revenue due to booming demand for high-end chips used in AI. This outlook drove gains in TSMC’s U.S. listed stocks, with the S&P 500 approaching record highs as AI optimism drove up tech stocks at home and abroad. The optimistic outlook also boosted the broader Taipei market, as well as other Taiwanese tech firms. Shares of AI server makers Quanta and Wistron also jumped significantly.

In addition to the bullish revenue projection, TSMC’s announcement that it was evaluating building a third fab in southern Taiwan’s Kaohsiung city also contributed to the stock surge. The government has expressed support for TSMC’s expansion plans and reaffirmed Taiwan’s key role in producing the most advanced chips. Both TSMC and the Taiwanese government have emphasized the company’s importance to Taiwan’s trade-dependent economy, with Kaohsiung Mayor Chen Chi-mai highlighting the city’s efforts in providing stable and reliable resources for TSMC’s factories.

The company’s announcement has also been described as a strategic focus on Taiwan by civic leaders such as the Kaohsiung Mayor. TSMC’s importance to Taiwan is reflected in its nickname “the sacred mountain protecting the country”, emphasizing the significant role the company plays in Taiwan’s economic landscape.



Read more: TSMC’s bullish outlook cheers Taiwan stocks, government