time to read 1 minutes

How do you like your chips?INTL

How do you like your chips?

Taiwan Semiconductor Manufacturing Company (TSM), the world’s largest contract chip manufacturer, announced it plans to invest $100b over the next three years to increase the capacity and efficiency of its chipmaking plants.

The announcement came just days after rival chipmaker Intel (INTC) announced its plans to invest $20b into its chipmaking capabilities. Coincidence? We think not.

TSM is known for its lucrative partnerships with Apple (AAPL) and Qualcomm (QUAL). Since last spring, TSM has risen more than 200%, and this announcement sent the stock up by another 5% last Thursday.

why it matters
TSM has been the darling of many investor's portfolios over the past year due to its inflating stock price. It believes that now is the right time to make a large investment back into the business, due to the boom of 5G.