Shares Of Samsung And TSMC Rallies On As Intel Announce Its Outsourcing Plans
On Tuesday, Shares of Samsung Electronics rallied to join its bigger rival Taiwan Semiconductor Manufacturing Company Ltd (TSMC). It has been driven by growing with the expectations that the chipmakers will benefit from Intel Corp’s plan to outsource chip manufacturing. Samsung’s shares rose to around 5.8% which is the highest point in five months. They were also on track to finish higher for a third consecutive session.
On Thursday, Intel has announced that its new 7-nanometer chip technology is six months behind schedule. The company further added that they are considering farming out more work to the outside semiconductor. On Monday, the U.S. chipmaker also added that its chief engineering officer had justified the company.
Nomura analyst C.W. Chung said, “Samsung could benefit as Intel will outsource more chip manufacturing.” Also “The foundry business accounts for a small portion of Samsung’s total revenue, but this does not mean that the foundry industry is small.”
On Tuesday, shares of TSMC also reported extended gains by jumping nearly 5% after hitting a record-high after Intel’s woes. However, TSMC now has higher market capitalization than Samsung Electronics with a market value of $398 billion1 dollars or 1.66 trillion new Taiwan dollars. Moreover, as of Tuesday, the tech giant was valued at 369.18 trillion won.
Announcing last year a plan, Samsung is taking TSMC on the chip contract manufacturing business to invest $111.43 billion or133 trillion won in non-memory chips through 2030. The world’s top memory chipmaker, Samsung, also makes smartphones, displays, TVs, and others.