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TSMC eyes Chiayi County for cutting-edge 1-nanometer chip plant

EditorAhmed Abdulazez Abdulkadir
Published 01/22/2024, 01:20 PM
© Reuters.
TSM
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TAIPEI - Taiwan Semiconductor Manufacturing Co. (TSMC), the world's leading semiconductor manufacturer, is actively considering Chiayi County as a potential location for its advanced 1-nanometer chip production facility. Amidst its expansion efforts within Taiwan, TSMC is evaluating the Southern Taiwan Science Park for this new plant and engaging in discussions with the relevant authorities.

The company, which is currently constructing a 2-nanometer fabrication plant in Baoshan Township, Hsinchu County, continues to demonstrate its commitment to bolstering its operations on the island. This commitment is further underscored by TSMC's exploration of another facility in Kaohsiung.

Local officials in Chiayi County and other parts of western Taiwan have expressed support for TSMC's potential investments. These developments are expected to deliver significant benefits to the industrial sector across the region. The establishment of a 1-nanometer chip manufacturing facility would mark a significant advancement in semiconductor technology and reinforce Taiwan's position as a pivotal player in the global tech industry.

While TSMC has not yet confirmed any final decisions regarding the location of the new facility, the consideration of Chiayi County highlights the strategic importance of the area for Taiwan's tech expansion.

InvestingPro Insights

As Taiwan Semiconductor Manufacturing Co. (TSMC) evaluates the potential of Chiayi County for its cutting-edge 1-nanometer chip production, investors and industry observers may find the following insights from InvestingPro particularly relevant. TSMC has shown a strong commitment to growth and stability, as evidenced by its impressive track record of raising its dividend for 3 consecutive years and maintaining those payments for 21 consecutive years. These "InvestingPro Tips" signal the company's financial health and its ability to generate shareholder value consistently.

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From a financial perspective, TSMC boasts a robust market capitalization of $518.17 billion, reflecting its heavyweight status in the semiconductor industry. The company's gross profit margin stands at a healthy 54.36%, highlighting its efficiency in maintaining profitability despite industry challenges. Additionally, TSMC's stock is trading at a high P/E ratio of 19.36, which could suggest a strong investor confidence in the company's future earnings potential.

For readers seeking to delve deeper into TSMC's financial metrics and gain further insights, InvestingPro offers additional tips. With a special New Year sale, subscribers can now enjoy up to a 50% discount on the InvestingPro service. To take advantage of this offer, use coupon code SFY24 for an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 for an additional 10% off a 1-year subscription. With 17 more "InvestingPro Tips" available, investors can make more informed decisions as TSMC continues its strategic expansion in Taiwan's tech sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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