TSMC shares soared 53.9% in 2019 – Many thanks to 5G

According to media reports, as the world’s largest foundry chip maker, TSMC is regarded as a representative of global technology needs. As 5G technology moves towards 2020, investors are investing in 5G networks and equipment. The launch prospects are optimistic. TSMC shares rose 53.9% in 2019 to close at NT $ 331 ($ 11.06). The company’s market value has risen to $287.51 billion, which is comparable to that of rival Samsung’s $288.72 billion. According to market research firm TrendForce, TSMC and Samsung are the two largest companies in the global semiconductor industry. They have about 50% and 18% market share respectively.

Co-CEO of TSMC Liu Deyin
Co-CEO of TSMC Liu Deyin

According to data released by TSMC in early December 2019, the cumulative revenue in the first 11 months of last year increased by 2.7% to NT $ 966.67 billion (approx. $32.32 billion). By 2020, the company’s new growth driver may be 5nm chips. Apple will likely 5nm chips in the next-generation iPhones. The next-gen Huawei Mate series will also use this chip. TSMC aims to launch 3nm process chips in 2022.

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Analysts take on TSMC growth

According to Samuel Wang, a vice president analyst at Gartner, a market research firm, TSMC initially adopted a purely foundry business model recognized by customers, and company management knows how to manage risk.

He said that by taking the lead in launching new processing technology and high-end equipment, but did not go too fast, the company also invested in research and development and gave top employees the “highest incentive” to motivate them to “work day and night and strive to reach the threshold.” , TSMC has achieved the “high-profit margin” goal.

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Analysts said that the growing market value of TSMC also reflects the fact that more and more devices worldwide need to order microprocessors. According to TrendForce data, the size of the semiconductor industry will reach $70 billion in 2020, setting a new high in five years.

TrendForce analyst, Chris Hsu, said that chip demand currently comes mainly from devices such as smartphones and laptops. He believes that high-performance computing, such as cloud computing operations and data center processing further boost demand. In addition, developers also want to use processors in IoT devices, “smart” surveillance devices, and autonomous vehicles.

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