Taipei, Nov. 9 (CNA) Shares of contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) moved sharply higher Tuesday morning in Taipei after its American depositary receipts rose 2.64 percent in the United States overnight.
The strong showing of TSMC's ADRs came in response to news that U.S.-based client Advanced Micro Devices Inc. (AMD) won orders from Meta (Facebook) to supply the Epyc processor, which uses TSMC technologies, for Meta's data center, dealers said.
As of 10:41 a.m., shares of TSMC had risen 1.66 percent to NT$612.00 (US$22.03), with 24.68 million shares changing hands on the Taiwan Stock Exchange.
As TSMC is the most heavily weighted stock on the market, the benchmark Taiex also trended higher, rising 140.81 points or 0.81 percent to 17,556.11.
"TSMC shares had moved in consolidation for some time," Hua Nan Securities analyst Kevin Su said. "Today, the stock took off, with buying sparked by positive leads from AMD.
"Markets at home and abroad are enthusiastic about the metaverse concept, and the news from AMD showed that TSMC's technological lead over its peers helped AMD secure orders," Su said.
On Monday, AMD shares surged 10.14 percent after the announcement, helping the Philadelphia Semiconductor Index rise 1.25 percent.
The so-called "metaverse" concept has been talked up Meta CEO Mark Zuckerberg since July. It refers to a digital world where people can move between devices and communicate in a virtual environment.
According to AMD, the company also unveiled the Milian-X server series of the third generation Epyc, which applies to TSMC's high-end 3D Chiplet packaging and testing technologies.
In addition to the pure wafer foundry business, TSMC has entered the high-end IC packaging and testing market to have the capacity to provide one-stop shopping services to its clients.
TSMC's gains Tuesday morning contributed more than 80 points to the Taiex.
"The bellwether electronics sector served as the major driver of the broader market again thanks to TSMC," Su said. "The sector accounted for more 60 percent of total turnover this morning."
As of 10:41 a.m., the electronics sector had risen 1.46 percent with the semiconductor sub-index up 1.96 percent.
Among other semiconductor stocks, United Microelectronics Corp., a smaller contract chipmaker in Taiwan, had added 2.56 percent to NT$64.10, and integrated circuit designer MediaTek Inc. had gained 1.53 percent to NT$995.00.
Elsewhere, old economy stocks also steamed ahead, with airlines and the steel sector showing momentum, dealers said.
China Airlines had risen 3.57 percent to NT$21.75 and rival EVA Airways had added 4.47 percent to NT$24.55.
In addition, Tung Ho Steel Enterprise Corp. had gained 0.84 percent to NT$41.95 and Ta Chen Stainless Pipe Co. had risen 2.37 percent to NT$47.45.
