Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) stock rose Tuesday after reports that the chipmaker plans to raise prices for its advanced chips, shrugging off heightened geopolitical tensions as China carried out military drills near the island.
Local media reported that Taiwan Semiconductor will lift prices for high-end chips starting next year due to tight global supply, the Taipei Times said Tuesday.
Concord Securities analyst Kerry Huang said potential price hikes could support continued strong sales growth in 2026, making Taiwan Semiconductor’s upcoming guidance a key focus.
Also Read: Three-Fourths Of Taiwan Semiconductor’s Sales Now Come From America
China Drills Fail to Shake Investor Sentiment
China’s military conducted “Justice Mission 2025” exercises involving army, naval, air force, and artillery units around Taiwan, prompting Taiwan to place its forces on alert and criticize Beijing’s actions.
Despite the tensions, ample market liquidity kept investor sentiment positive, with Huang saying the TAIEX could challenge the 29,000 level by year-end.
Earthquake Impact and Earnings in Focus
Taiwan Semiconductor also remains in focus after a magnitude 7.0 earthquake struck off northeastern Taiwan late December 27, raising concerns about potential production disruptions.
Parts of its Hsinchu Science Park facilities reached evacuation thresholds.
Although the quake caused no structural damage, sensitive equipment, including EUV lithography systems, automatically shut down to protect operations.
As a result, Taiwan Semiconductor may need to scrap or re-inspect wafers that were in process at the time.
Analysts estimate potential losses could reach about 100 million New Taiwanese dollars.
Investors now await Taiwan Semiconductor’s January 15 earnings briefing for updated guidance.
Taiwan Semiconductor stock has gained over 52% year-to-date, topping the PHLX Semiconductor index’s over 44% returns.
TSM Price Action: Taiwan Semiconductor shares were up 0.31% at $301.86 during premarket trading on Tuesday, according to Benzinga Pro data.
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