(Bloomberg) – Taiwan’s largest shares are so high they added $ 72 billion in just two days, which is equivalent to swallowing all of Goldman Sachs Group Inc.
Taiwan Semiconductor Manufacturing Co. rose as much as 9.9% in Taipei on Tuesday, spreading an impressive rebound that made it the 10th largest company in the world. The chipmaker is worth more than $ 410 billion, beating out US giants Johnson & Johnson and Visa Inc. Daily stock movements are capped at 10% in the Taiwan stock market.
It is difficult to overstate the influence TSMC exerts on Taiwan’s financial markets. Representing nearly a third of the local benchmark, it has only surpassed the Taiex record it had been in for three decades. Its recovery is drawing foreign flows to Taiwanese stocks, increasing demand for the local currency. The Taiwan dollar rose 1% on Tuesday to the strongest since April 2018.
The latest boost to TSMC’s shares came after Intel Corp. warned last week that its 7-nanometer chips are behind schedule and that it may outsource its production. The US chipmaker is expected to channel new business to TSMC, given its global leadership in silicon manufacturing and semiconductor manufacturing history for the world’s largest technology corporations.
A report on Monday suggested that Intel had placed orders with TSMC for 180,000 units of 6nm chips by 2021. Meanwhile, brokerages, including Nomura Holdings Inc. and Credit Suisse Group AG, upgraded TSMC to the equivalent of the purchase.
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