Nasdaq Semiconductor Related Newsletter

October 4, 2024

Taiwan Semiconductor Manufacturing (TSMC) as a Long-Term Investment

Potential for Long-Term Growth

Taiwan Semiconductor Manufacturing Company (TSMC) is being highlighted as a potential component of a millionaire-making portfolio. Despite the unlikely scenario of TSMC returning 3,000% over the next 30 years, it is positioned to capitalize on the strong growth trends in the semiconductor industry.

Industry Growth Projections

The global semiconductor industry is forecasted to grow significantly, with sales expected to reach $1.47 trillion by 2030, up from $439 billion in 2020. This represents a compound annual growth rate (CAGR) of almost 13% over the decade, driven by demand in data centers, computers, and smartphones.

Market Dominance

TSMC, as the world's largest semiconductor foundry, commands a market share of close to 62%. This dominance is expected to continue, with the global semiconductor foundry market projected to reach $231 billion in revenue by 2032. If TSMC maintains a 60% share, its revenue could grow to $139 billion.

Investment and Expansion Plans

TSMC has approved a $30 billion capital expenditure plan to upgrade its facilities and construct new fabs to meet growing demand. The demand for its advanced 3-nanometer chips is particularly strong, with orders booked through 2026. Additionally, TSMC plans to increase prices for its 3nm chips and advanced chip packaging in the coming years.

Market Performance

As of October 4, 2024, TSMC's stock (TSM) is trading at $179.48, up 2.09% from the previous day.

Conclusion

Investors looking to build a long-term, million-dollar portfolio may find TSMC an attractive addition due to its strong market position, industry growth prospects, and significant investment in advanced manufacturing capabilities.

Sources:

• [Is Taiwan Semiconductor a Millionaire-Maker Stock? | Nasdaq]
• [Is Taiwan Semiconductor Manufacturing a Millionaire-Maker Stock?]
• [Is Taiwan Semiconductor A Millionaire-Maker Stock? - Barchart.com]

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