Semiconductor major Taiwan Semiconductor (NYSE:TSM) is considering setting up an advanced chip packaging facility in Japan, according to Reuters.
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While discussions are still in the early stages, one alternative on the table is TSM bringing its high-precision CoWoS (Chip on Wafer on Substrate) technology to Japan. This technology offers higher processing power alongside lower power usage. In response to robust demand, the company also plans to boost its chip packaging capacity in Chiayi, Southern Taiwan.
More Strategic Partnerships
Moreover, TSM is teaming up with Sony (NYSE:SONY) and Toyota (NYSE:TM) in Japan. The company’s total investment in the country is anticipated to exceed $20 billion, according to Reuters. Similarly, other major chipmakers are aiming to capitalize on the elevated demand trends. Intel (NASDAQ:INTC), for instance, is planning an advanced chip packaging R&D unit in Japan. This strategic move aims at widening its partnerships with local supply chain names in the country.
In addition to these developments, Samsung (GB:SMSN) (OTC:SSNLF) is setting up an advanced chip packaging R&D unit in Yokohama. The deepening focus on Japan for chip technology comes as Japanese authorities increasingly look to semiconductors to drive growth. The country has offered subsidies to woo global chipmakers. Despite TSMC currently controlling over 50% share in the overall foundry market, Samsung is ambitious and aims to become the top semiconductor foundry globally by 2030.
Is TSM a Buy, Sell, or a Hold?
TSM’s stock price has rallied by nearly 54% over the past year amid the AI boom. While the overall consensus rating for TSM remains a Strong Buy among analysts, the average TSM price target of $144.33 points to a modest 5.4% potential upside in the stock.
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