Taiwan Semiconductor Manufacturing Co’s (NYSE:TSM) investment in Kaohsiung has been pivotal in driving the city’s development, the Taipei Times cites from Kaohsiung Mayor Chen Chi-mai’s interview on Monday.
The Taiwanese contract chipmaker targets five factories in Kaohsiung, a heavy industrial city.
The first plant will likely start commercializing by 2025 or 2026, six months ahead of schedule, as the company ramps up its production of advanced technology chips in Taiwan.
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The chipmaker’s initiatives have prompted the city government to set up four water recycling plants and ultra-high-voltage substation facilities in the Nanzih Technology Industrial Park to ensure a stable water and power supply.
Chen said that, in addition, Kaohsiung is building a new provincial highway and interchanges connecting Freeway No. 1 to boost Taiwan Semiconductor’s transportation network.
Chen said that semiconductor companies in Kaohsiung, Tainan, Chiayi County, and Pingtung County will all be nearby, which will help drive industry integration.
The company also remains committed to its geographical diversification efforts to help countries consolidate their semiconductor base.
In December, Taiwan Semiconductor showcased its advanced chip fabrication plant debut in Arizona, with Apple Inc (NASDAQ:AAPL) as its leading customer.
The project value has surged from $12 billion to $20 billion. The company plans to build two additional fabs on the site by the end of the decade, bringing the total investment to $65 billion.
International Data Corp expects Taiwan Semiconductor to command a 67% share of the global foundry market in 2025 as its AI and crypto technologies gain traction.
Taiwan Semiconductor stock has gained 100% year-to-date.
Investors can gain exposure to semiconductor stocks through the VanEck Semiconductor ETF (NASDAQ:SMH) and the iShares Semiconductor ETF (NASDAQ:SOXX).
Price Action: TSM stock traded lower by 0.79% to $204.67 premarket at the last check on Friday.
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- Taiwan Semiconductor Expands in Japan: Sony and Denso Among First Customers
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