By: Jeffrey Wu and Frances Huang
Taipei, Oct. 11 (CNA) A Japanese brokerage has forecast that Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, will post a 14 to 16 percent increase in sales from a year earlier in 2020 due to high demand from its four major clients.
In a research paper, the Japanese securities house said that amazed by TSMC's lead in high-end technology development over its peers, the company's four major clients – Chinese integrated circuit designer HiSilicon Technologies Co., U.S.-based IC designer Qualcomm Inc., American IC chip supplier Advanced Micro Devices Inc. (AMD), and U.S.-based consumer electronics giant Apple Inc. – will place more orders to the Taiwanese chipmaker in 2020.
Amid such optimism toward the chipmaker's business outlook, the brokerage has raised a target price on TSMC's shares to NT$330 (US$10.65) from NT$295, while leaving a "buy" recommendation on the stock unchanged.
On Wednesday, TSMC shares fell 1.57 percent to close at the day's low of NT$282.00 on the Taiwan Stock Exchange after a 3.06 percent increase on Tuesday as investors turned cautious about the high-level trade talks between Washington and Beijing set to open Thursday.