On the 44th anniversary of its initial public offering (IPO), Apple (AAPL) There is much to celebrate. The technology leader has enjoyed fairly solid growth this year, with its shares up 25%.
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This week also brought a major product update, with Apple releasing a software update that includes integration between Siri and ChatGPT, a long-awaited advancement in artificial intelligence (AI).
Over the past few months, the release of Apple Intelligence via the iOS 18.1 update has put Apple in the spotlight as consumers adapt to the new artificial intelligence capabilities now available on iPhone. New features include the ability to generate writing, email and notification summaries to help users improve their work efficiency.
As Apple ramps up its artificial intelligence research and development efforts, its demand for chips will only increase. Thankfully, one of its major semiconductor suppliers has just announced a positive update that will benefit Apple and itself.
Justin Sullivan/Getty Images
Apple chip supplier’s production outlook optimistic
Apple has been working with TSMC long before the launch of ChatGPT in November 2022 triggered the current artificial intelligence revolution.
RELATED: Apple unveils new AI chip manufacturing partner, but it’s not Amazon
In 2010, it offered the chip maker a contract that helped it move to the forefront of the semiconductor market. Ten years later, TSMC has become the chip supplier to nearly all of Silicon Valley, carving out a unique niche.
While the company remains headquartered in Taiwan, it is working to establish a manufacturing base stateside.
TSMC recently completed a 3.5 million-square-foot manufacturing facility in Phoenix, Arizona, known in the industry as a “fab.” It is described as “the most advanced wafer factory in the country” and is currently running a pilot program to produce sample wafers used in semiconductors and ship them to customers.
That’s worked out well for Apple, which has pledged to become the company’s largest customer for its new Arizona factory. CEO Cook recently posted on X about Apple’s relationship with TSMC, expressing enthusiasm that Apple will soon use U.S.-made chips
Apple Silicon unlocks new levels of performance for our users. Soon, many of these chips could be stamped “Made in the USA.” The opening of TSMC’s Arizona facility signals a new era of advanced manufacturing in the United States—and we are proud to be the facility’s largest customer. pic.twitter.com/rBoiEUwZaX
— Tim Cook (@tim_cook) December 6, 2022
TSMC has big plans for its U.S. factories, including investing $65 million to build two more fabs on site by 2030. back on schedule” with an eye toward a higher-capacity future.
That appears to be good news for the companies buying its chips, which include not just Apple but several other prominent tech industry leaders like Nvidia and Advanced Micro Devices (AMD) . Now, its growing presence in the U.S. could help it expand its customer base further as demand for its chips continues to grow.
Futurum Group CEO Daniel Newman recently spoke with CNBC, He said, “We have seen that TSMC can name its price and everyone will pay because what is needed now is reliability and quality.
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TSMC’s opportunities in the chip field
TSMC’s status as a chipmaker relied upon by big tech companies has helped spur huge gains in its stock price. TSMC shares are up 96% over the past year, outpacing Apple and many other Magnificent 7 stocks, including Tesla (Tesla) and microsoft (Microsoft Corporation) .
Alexander Wah, founder and chief investment officer of Prince Capital, was interviewed streetInformation about TSMC stock and the company’s future prospects. He agreed with Newman, noting that few companies can set prices as well as TSMC.
However, he views the stock from a rather cautious perspective. “I think TSMC’s stock will be affected depending on whether it continues to meet its internally set goals and forecast for investors, which seems to be their consistent ability.”
Related: Nvidia expands international recruiting in key new technology areas
Hua also pointed out, “There are many factors currently affecting this market. Prince Capital learned about these factors when studying small and medium-sized enterprises in this field. These companies may be the outstanding performers in the market.” The semi-finals/hardware space may be Show up next year.
Chris Versace facing the street recently highlighted TSMC’s strong sales growth, saying “the company’s combined revenue growth of 31% year over year in October and November should dampen any doubts about demand for artificial intelligence, data centers or smartphones.”
Related: Veteran money manager sees a world of pain ahead for stocks
