2021-08-23
As of the data on the morning of the 18th, TSMC currently has the highest market value among Asian companies, exceeding US$538 billion. Tencent ranked second, the market value of more than $ 536 billion, while Ali Baba is in third place, about $ 472 billion.
Comparison of TSMC's market value with Tencent and Alibaba
According to CNBC's analysis, the reasons for the recent increase in TSMC's market value include the disruption of the supply chain caused by the new crown epidemic, and the surge in demand from industries such as automobiles and data centers. At present, global semiconductors are facing continuing shortages, driving the stock prices of chip makers to rise.
TSMC is Apple's main supplier, and its customers include Apple, Qualcomm and Nvidia. Since the beginning of this year, TSMC’s stock price has risen by more than 6%. According to Reuters, TSMC said earlier this year that it plans to invest 100 billion U.S. dollars in the next three years to increase production capacity in order to cope with the shortage of chip supply.
At the chip manufacturing process node, TSMC has mass-produced the 5nm process, and recently obtained the permission to build a 2nm process chip factory in Taiwan. According to sources, the construction of the factory will begin in 2022 and the equipment installation will be completed in 2023.
According to data released by the Taiwan Semiconductor Industry Association of China, in the second quarter of 2021, Taiwan's global semiconductor market sales increased by 29.2% over the same period in 2020, reaching 133.6 billion US dollars. The overall integrated circuit (IC) industry output value also soared 31.6% from the same period last year, reaching 33.3 billion U.S. dollars.
According to Taiwan’s “Lianhe News” report, TSMC also has a positive view on the overall semiconductor industry. It is said that TSMC will raise the two indicators of the global semiconductor industry and the company’s outlook this year for the second time, including that the output value of the global semiconductor industry will increase by 17% this year. Last quarter’s estimated annual growth rate of 12% increased by 5 percentage points; the annual growth rate of the foundry industry was also raised from 16% in the previous quarter to 20%, and TSMC’s revenue growth rate will be better than that of the overall foundry industry.
TSMC estimates that total revenue for this quarter is expected to increase from 9.9% to 12.1% on a quarterly basis, with an average quarterly increase of about 11%, again challenging a single-quarter high.
Industry organizations have also made an optimistic estimate of the total output value of Taiwan's chip industry in 2021. According to the latest forecast by industry organizations, Taiwan’s IC industry is expected to have an output value of US$135.8 billion in 2021, an increase of 24.7% over 2020.
On the other hand, Tencent will release a performance report after the market closes on the 18th. Since the beginning of this year, the two major technology giants, Tencent and Alibaba, have fallen more than 25%. According to Bloomberg's analysis, the education industry is an important source of advertising revenue for Tencent, so Tencent's online advertising revenue may be affected to a certain extent. In addition, Tencent is also facing criticism of its online games. According to a Bloomberg survey of 17 analysts, Tencent's second-quarter net profit is expected to fall by 7.1%. This will be its first profit decline since the third quarter of 2019.
According to Bloomberg, Tencent's near-term prospects are still challenging. Analysts expect the profit decline in the third quarter to expand to more than 10%, which will be the first two consecutive quarters of profit decline for Tencent. Some analysts believe that weak earnings will not cause the stock to fall too much, especially with long-term positive factors such as digital transformation.
However, the decline in stock prices also makes the stock's valuation more attractive. According to a report by the Securities Times on the 13th, many asset management giants such as Fidelity and Schroder did not substantially reduce their holdings of Chinese assets. Instead, they "buy the bottom" against the trend in the process of decline. Tencent, Ali, Meituan, etc in the list of holdings.
*Disclaimer: The above content is compiled from the Internet, does not represent the views and positions of the semiconductor industry circle, and is for exchange and learning purposes only. If you have any questions or objections, please leave a message to contact us.
