TSM stock closed Wednesday, October 19, 04:00 PM EDT
Taiwan Semiconductor (NYSE:TSM) is debating expanding into Japan as it seeks to lower geopolitical risk amid escalating Sino-American tensions, according to The Wall Street Journal.
The news source reported that although the Japanese government has made overtures to the largest semiconductor foundry manufacturer in the world, no decision has yet been taken and the corporation is still determining whether an expansion is viable.
In November 2021, Taiwan Semiconductor (NYSE:TSM) revealed plans for a multi-billion dollar wafer fabrication facility in Kumamoto, Japan.
Developments Affecting TSM Stock
The next facility will use less sophisticated 22-nanometer and 28-nanometer technologies and is expected to start producing by the end of 2024. The Journal continued, citing sources familiar with the situation, that if Taiwan Semiconductor (TSM) were to expand beyond the present plant, it would be for more sophisticated chips. In addition to Apple (AAPL), Nvidia (NVDA), Qualcomm (QCOM), Advanced Micro Devices (AMD), and other clients, the business also produces chips for them. In premarket trading, shares of Taiwan Semiconductor (NYSE:TSM) decreased about 1.4% to $62.85.
As tensions between the U.S. and China get worse, the semiconductor industry is caught in the middle. This is because the Biden Administration recently put limits on what chip equipment can be sent to China. Separately on Wednesday, Mark Liu, chairman of TSM claimed that the semiconductor industry faces “more serious” difficulties as a result of the escalating hostilities between the United States and China as well as Taiwan and China.
Separately, Taiwan Semiconductor (NYSE:TSM) Chairman Mark Liu stated on Wednesday that the chip sector is facing “more serious” issues as a result of the escalating hostilities between the United States and China, Taiwan, and China.
At the Taiwan Semiconductor Industry Association’s annual conference, Liu remarked, “The U.S.-China trade battle and the increase of cross-Strait tensions have brought increasingly serious challenges to all industries, including the semiconductor industry.” Taiwan Semiconductor (NYSE:TSM), according to a report earlier this month, was one of the businesses that received one-year exemptions from the new export regulations, allowing them to continue receiving chip-making machinery in China.
Featured Image- Megapixl @ Andreistanescu
Author Jowi Kwasu 
