TSM - Taiwan Semiconductor Manufacturing Company Limited

NYSE - NYSE Delayed Price. Currency in USD
-0.05 (-0.12%)
At close: 4:01PM EDT

41.61 -0.16 (-0.38%)
After hours: 6:26PM EDT

Stock chart is not supported by your current browser
Previous Close41.82
Bid41.70 x 2200
Ask41.77 x 1800
Day's Range41.57 - 41.95
52 Week Range34.21 - 45.64
Avg. Volume9,105,808
Market Cap212.065B
Beta (3Y Monthly)1.01
PE Ratio (TTM)18.73
EPS (TTM)2.23
Earnings DateN/A
Forward Dividend & Yield1.28 (3.05%)
Ex-Dividend Date2019-06-24
1y Target Est45.88
Trade prices are not sourced from all markets
  • GuruFocus.com7 days ago

    Spiros Segalas' Top 5 Buys of the 2nd Quarter

    Guru’s largest new position is Qualcomm

  • TheStreet.com7 days ago

    TSMC's Sales Beat Is Encouraging News for Chip Stocks

    The chip manufacturing giant, whose clients include Apple, Nvidia, AMD and Qualcomm, just reported strong June sales and beat its Q2 revenue guidance.

  • Japan-Korea Spat Threatens to Upend Global Technology Chain
    Bloomberg8 days ago

    Japan-Korea Spat Threatens to Upend Global Technology Chain

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Resurgent tensions between Japan and South Korea threaten to wallop chipmakers from Samsung Electronics Co. to SK Hynix Inc., upsetting a carefully choreographed global supply chain by smothering the production of memory chips and other components vital to widely used devices.As the world fixates on Donald Trump’s campaign to contain Huawei Technologies Co. and China’s ambitions, a concurrent dispute between Beijing’s two richest neighbors also has far-reaching implications for the production of everything from Apple Inc. iPhones to Dell Technologies Inc. laptops. The industry is now scrambling to gauge the fallout after Japan -- citing longstanding and unresolved tensions -- slapped restrictions on exports to Korea of three classes of materials crucial to the production of semiconductors and cutting-edge screens.That maneuver, the most recent manifestation of decades of war-time tensions, places Samsung at the center of a firestorm and again underscores the global nature of the production machine that cranks out most of the world’s gadgets. Not only does it make memory chips, but Samsung is also the biggest producer of smartphones.Korea’s largest company has lost about 16 trillion won ($13 billion) in market value this month through Monday, while Hynix has shed 1.5 trillion won. The two companies -- which together account for 60% of the world’s memory chip-making capacity -- declined to comment.While inventory levels differ across each material, Samsung has under a month’s worth of supply on average, according to people familiar with the matter. Samsung and SK Hynix are busily sourcing alternatives, the people said, asking not to be identified talking about a sensitive political issue. The two Korean giants assured clients they would try to minimize the impact on output, but Samsung, for one, is bracing for potential production cuts or even stoppages should the situation persist, the people said.That’s why the Korean conglomerate’s de facto leader, Jay Y. Lee, hopped on a jet to Tokyo over the weekend for emergency meetings with Japanese suppliers. It’s unclear how deeply felt the impact might be -- much depends on whether Japanese Prime Minister Shinzo Abe and South Korean President Moon Jae-In can work out a compromise. But in a worst-case scenario, flexible screens for iPhones and other mobile devices could sputter, while memory chips used in everything from HP Inc. notebooks to Amazon.com Inc. servers could dwindle.“This is an unprecedented event,” said Jongjun Won, chief executive officer at Lime Asset Management Co. “If it’s lucky, the chip industry may be able to adjust inventories. There could be a happy ending if the Japan issue gets resolved in the meantime. However, the intertwining of politics and business is making it difficult to find a solution.”The dispute has spilled over into social media. South Koreans, angered by Japan’s move, have taken to Instagram and other platforms to call for boycotts of Japanese travel and consumer products.Japan’s targeting a trio of materials that, while little-known outside of the industry, is profoundly important for electronics production. The government says they also have sensitive military applications. Within the tech sector, fluorinated polyimide is required for the production of foldable panels -- such as those used in Samsung’s Galaxy Fold -- among other things. Photo-resists are key to chipmaking, while hydrogen fluoride is needed for both chip and display production.Finding substitutes won’t be easy: Korean corporations now depend on Japan for over 90% of all the fluorinated polyimide and resists it needs, and 44% of its hydrogen fluoride requirements, Societe Generale estimates. Ironically, if the dispute drags on, Japanese suppliers of those chemicals -- companies from JSR Corp. to Shin-Etsu Chemical Co. that comprise a small but inextricable link in the chain -- could take a hit as well.“This could be a negative factor for the world economy,” Huh Nam-Kwon, CEO at Shinyoung Asset Management Co, said by phone. “All we need to do is wait and see how the situation goes. Just one word from Abe could decide anything. It’s hard to predict.”The most significant impact will be on Samsung’s next-generation products: foldable displays as well as chips of 7 nanometer line-widths or less that’re made via the so-called extreme ultra-violet (EUV) process. That puts at risk Samsung’s express goal of investing $116 billion to become the No.1 in the logic chip business by 2030. Without Japan’s materials, Samsung may be hamstrung in efforts to develop an EUV-based foundry business and in advanced memory chipmaking.Their rivals may step in to fill that gap in the interim. Micron Technology Inc., the only other memory chip maker of significance, stands to benefit. Taiwan Semiconductor Manufacturing Co. could further widen its lead over Samsung when it comes to made-to-order chips, vying for Samsung customers like Qualcomm Inc. and Nvidia Corp.“There will be considerable impact on both sides,” said Heungchong Kim, a senior research fellow at the Korea Institute for International Economic Policy. “Those materials are not something that can be replaced in a short period. This is becoming a weird situation.”The situation may worsen if Japan removes South Korea from a so-called “White List” of countries treated as presenting no risk of weapons proliferation, a move Tokyo is now considering.Japan and Korea have traditionally turned to the U.S. to mediate in their clashes, but it’s unclear this time if Trump is keen to step into the fray. Compounding the situation are the basic mechanics of the restrictions. While not a ban per se, would-be exporters of the affected materials need to obtain a license from the government. That could take up to 90 days -- an eternity for a fast-moving industry.There’s also disagreement by industry analysts over which corporations exactly will get hit hardest, in part because some Japanese firms have either localized production in South Korea or maintain plants in countries such as China.“In the near-term, we do not expect Korean companies’ major customers to move to other component vendors due to high switching costs and long qualification process times,” said J.J. Park, head of Korean equity research at JP Morgan. But “if there is a bottleneck due to a shortage of key materials resulting from Japan’s curb on export of materials, we can’t rule out potential market-share loss to their peers.”Japan’s Sumitomo Chemical Co. is a key supplier of polyimides, according to Taipei-based WitsView and Isaiah Research -- but company representatives deny it makes the material. IHS Markit analyst David Hsieh said in addition to Sumitomo Chemical, SKC -- like Hynix, an affiliate of the giant SK Group -- or Kolon Industries are viable local substitutes.JSR is a major resist producer, while the global hydrogen fluoride market is dominated by Kanto Denka Kogyo Co., Showa Denko KK and Daikin Industries Ltd., according to Taipei-based Isaiah Research. Resist manufacturer Tokyo Ohka Kogyo Co. said it already supplies South Korean customers locally. Daikin said the restrictions will have no impact on its hydrogen fluoride because the materials are made in China, while Morita Chemical Industries Co. is building a plant there that will go online next year.“While high levels of semiconductor inventory might provide some cushion, time may not be on Korea’s side,” Citigroup economists Jin-Wook Kim and Johanna Chua said in a recent note. “Displacing Korean chips would disrupt the supply chain because building alternative sources needs specific technology and sizable capex.”(Updates with analyst’s comments from the 18th paragraph.)\--With assistance from Heejin Kim, Yuki Furukawa and Isabel Reynolds.To contact the reporters on this story: Sohee Kim in Seoul at skim847@bloomberg.net;Debby Wu in Taipei at dwu278@bloomberg.net;Pavel Alpeyev in Tokyo at palpeyev@bloomberg.netTo contact the editors responsible for this story: Tom Giles at tgiles5@bloomberg.net, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • 3 Reasons to Take a Shot at Nvidia Stock Now
    InvestorPlace12 days ago

    3 Reasons to Take a Shot at Nvidia Stock Now

    The past nine months have been nothing less than miserable for Nvidia (NASDAQ:NVDA). Since peaking near $293 per share in October of last year, Nvidia stock price has dropped to a low of $124.46, and its couple of rebound efforts in the meantime have been less than permanent.Source: Shutterstock The current Nvidia stock price near $163 is still just over half of what it was less than a year ago.Certainly the underpinnings of NVDA's weakness are understandable. They include the rebirth of rival Advanced Micro Devices (NASDAQ:AMD), the implosion of the cryptocurrency mining industry and a tariff war with China, all of which are still key factors weighing on investors' minds.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 5 Dividend Stocks to Buy From Across the Globe The degree of the punishment doesn't fit the scope of the crime, however, and three recent developments may well prove to be the excuse sidelined bulls are waiting for to file back into NVDA. RTX Super CardsWhether it's by design or just a simple coincidence is unclear, but the two big graphics processing powerhouses -- AMD and Nvidia -- rarely launch new products at the same time.That dynamic let Advanced Micro Devices steal some graphics processing unit (GPU) market share last quarter, driven by purchases of AMD's then-new 7 nanometer Radeon VII as well as its updated Polaris family.NVDA appears to have only been biding its time, however. The company's new GeForce RTX 2070 Super and GeForce RTX 2060 Super graphics cards, launching this month, deliver more power at the same price AMD is charging for its most comparable discreet GPUs.The current quarter could be better than expected for NVDA. Getting a Cheap Price From SamsungRather than tapping Taiwan Semiconductor Manufacturing (NYSE:TSM) as the manufacturer of its Ampere GPUs slated to debut in 2020, NVDA has asked Samsung Electronics (OTCMKTS:SSNLF) to handle the load. That may mean little on the surface to the layperson, but to technophiles, it matters.Details of the deal are scant, but most credible rumors seem to suggest that Samsung offered Nvidia a price it couldn't refuse. Either NVDA will enjoy wide margins on the GPUs or it will be able to pass those savings along to customers.It's often a risky move to switch suppliers and contracted manufacturers. Samsung has done similar work for NVDA in the past, though, and the Korean firm isn't exactly an unknown name in the business. MellanoxFinally, in March of this year, Nvidia announced that it intended to buy Israel's Mellanox Technologies (NASDAQ:MLNX), which makes internet switches and adapters, offering $6.9 billion in cash for the company.China, however, could still scuttle the deal.Chinese regulators could claim the pairing violates its antitrust standards. It's a stretched argument, but that scenario could still play out And, given the trade war tensions in place now, Beijing could easily run such interference for purely political reasons.Following a relatively amicable G20 summit that ended in an agreement to at least not impose any new tariffs on trade between China and the United States, however, China may choose to offer another olive branch by not impeding the acquisition.Mellanox would provide Nvidia with an even stronger hold on the data center market. The Bottom Line on NVDA StockDon't kid yourself. For better or worse,rhetoric and perception has done most of the damage to Nvidia stock, and it's a change in the rhetoric and perception that will lift Nvidia stock price again. This is, as much as anything else, a psychological situation.None of the three aforementioned developments is earth-shattering, but all are high-visibility developments that can quickly improve sentiment towards Nvidia stock, setting the stage for a sizable rebound.But there's still the impasse with China, which supplies Nvidia with half of its revenue. Even with no new tariffs being established, existing ones remain in place. There's little doubt that NVDA has felt their impact.Eventually, however, the tariffs will be rescinded or Nvidia will figure out a way to adapt to them. The deeper dive into data centers is one such adaptation. Switching production of its GPU to Samsung is another.Meanwhile,analysts' average price target for Nvidia stock is about $182; the most bullish analyst has a $225 price target on the name. Though those are forward-looking targets on NVDA, the company's got enough fresh firepower in its arsenal to justify prices somewhere between those two figures.It increasingly looks like investors are starting to recognize that reality, too.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Should Be Every Young Investor's First Choice * 5 IPO Stocks to Buy -- According to Wall Street Analysts * The Top 10 Best Sectors in the Market for 2019 The post 3 Reasons to Take a Shot at Nvidia Stock Now appeared first on InvestorPlace.

  • Asia-Pacific Update: Most Indexes Fall—with a Few Exceptions
    Market Realist14 days ago

    Asia-Pacific Update: Most Indexes Fall—with a Few Exceptions

    Australia’s S&P ASX 200 was the best-performing index in the Asia-Pacific region on July 3. The index gained 0.59% on the day to end near its 12-year high at 6,685.5.

  • Easing of China trade war is helping this beleaguered tech sector the most
    MarketWatch15 days ago

    Easing of China trade war is helping this beleaguered tech sector the most

    Chip-related stocks lead the broader tech sector higher following a truce in the trade war with China, which threatens to drag heavily on suppliers of semiconductors.

  • Huawei Reprieve Is Good and Bad News for Asia Tech Stocks
    Bloomberg16 days ago

    Huawei Reprieve Is Good and Bad News for Asia Tech Stocks

    (Bloomberg) -- Stock markets in Asia surged in a relief rally Monday after the world’s largest economies declared a truce in their trade war. The sector that just won the biggest reprieve is tech stocks.President Donald Trump’s decision to allow U.S. corporations to resume sales to Huawei Technologies Co., China’s largest telecommunications-equipment maker, and plans to hold off imposing an additional $300 billion in tariffs made tech stocks the best performers in Asia Monday. The MSCI Asia Pacific Infotech Index soared as much as 2%, while the regional benchmark climbed 0.9%.Trump and Xi Call Time (For Now) on Trade War: Balance of PowerShares of chipmakers -- among the biggest contributors to the MSCI Asia Pacific Index -- have been embroiled in the U.S. and China trade conflict for more than a year. Trump’s move to cut off supplies to Huawei in May added to the sector’s wall of worry. Volatility has soared by about 300% since its low just before the trade spat escalated.These Asia Stocks May Benefit From Halt to Huawei Ban, Citi Says“The lifting of a ban on the sale of technology to Chinese companies was a step beyond expectations and the market reaction come Monday will likely be positive,” said Kerry Craig, global market strategist at JPMorgan Asset Management, by email.Samsung Electronics Co. -- the world’s biggest chipmaker -- erased early gains and fell 0.9% after Japan said the exporters of chip materials to South Korea will have to apply for individual approvals from July 4, citing a worsening bilateral trust relationship. SK Hynix Inc., a supplier to both Huawei and U.S. companies, stayed buoyant.On the flipside, Huawei’s limited supply of imported chips that had helped boost China’s domestic producers amid Trump’s blacklist may be negatively impacted. Watch Unigroup Guoxin, Ingenic Semiconductor, Wuhan P&S Information Technology, Hangzhou Silan Microelectronics and Konfoong Material.“The most fragile part of the tech sector in our view remains semiconductor names, due to the uncertainty surrounding Huawei and the entity list combined with persistent price decline in memory chips,” said Frank Benzimra, head of Asia equity strategy at Societe Generale SA.PC, Phone SuppliersTrump’s decision to hold off on an additional levies will be good for suppliers of personal computers and smartphones.“We expect the market to react positively as the next batch of tariffs impacting PCs and smartphones now will not be imposed,” Citigroup analyst Arthur Lai said in a June 30 report. Lai pointed to companies that are “fast and flexible enough to adapt to operating environment changes” like Taiwan’s Delta Electronics, Micro-Star International, Inventec and Wistron.Here are some other sectors to watch:China StocksChina investors can finally turn their focus elsewhere after the Trump-Xi meeting showed some progress on trade. Fund managers weren’t expecting much as the two leaders met Saturday at the Group of 20 summit in Japan. An agreement to resume negotiations will be welcomed by investors.Chinese video surveillance giants could rally -- Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co. -- after the U.S. and China agreed to resume negotiations. In May, the U.S. administration considered barring both companies from purchasing U.S. technology.The DMZ MeetTrump’s brief crossing of the North Korean border in the Demilitarized Zone and an agreement to restart stalled nuclear talks in a historic meeting with Kim Jong Un may also move defense-related stocks:South Korea’s so-called ‘‘peace stocks’’: Hyundai Rotem rose 5.9%, Hyundai Elevator climbed 8.5%, Namhae Chemical gained 3.7%, Hyundai Engineering climbed 2.6%, HDC Hyundai Development advanced 0.6%Japan: Ishikawa Seisakusho, Howa Machinery, Hosoya Pyro-Engineering, Mitsubishi Heavy IndustriesJapanWatch auto stocks as Japan and the U.S. agreed to speed up trade talks after Trump threatened to raise auto tariffs on Tokyo. The U.S. is Japan’s largest export market after China and its biggest car customer. Companies to keep an eye on include: Toyota Motor, Honda Motor, Nissan Motor, Isuzu, Hino and Subaru.As disputes over wording on climate change and trade became a focus at the G-20, a Japanese stock that could bear the brunt of any issues on this front is Hitachi Zosen. There are more than 370 waste-to-power plants operating in Japan, according to the environment ministry’s Kurisu. Japanese companies including Hitachi are producing and exporting the facilities.South KoreaPresident Moon Jae-in’s meeting with Trump on Sunday could also give Korea’s stocks a jolt Monday:Auto stocks and their suppliers: Kia Motors, Hyundai Motor, SL Corp., Hyundai Wia, Mando Corp and Hankook TireKorean steel: PoscoSoutheast AsiaVietnam’s recent fame as a big winner of the U.S.-China trade war, putting itself in Trump’s crosshairs, may lead to some moves in the nation’s stock market: Kinh Bac City, Gemadept, Thanh Cong Textile, Vietnam National Textile & Garment Group, FPT Corp., Mobile World.SkepticismWith no real trade deal in place, some aren’t convinced the relief rally expected on Monday will last.“The reprieve may be short-lived and there is still no guarantee that a deal can be reached or even that any deal would completely address all of the differences that have driven investor anxieties, particularly when it comes to technology and the enforcement of a possible deal,” JPMorgan’s Craig said.(Updates throughout with Monday's market moves.)\--With assistance from Naoto Hosoda, Kurt Schussler, Min Jeong Lee, Nguyen Kieu Giang and Cormac Mullen.To contact Bloomberg News staff for this story: Jackie Edwards in Sydney at jedwards160@bloomberg.net;Abhishek Vishnoi in Singapore at avishnoi4@bloomberg.net;Amanda Wang in Shanghai at twang234@bloomberg.net;Heejin Kim in Seoul at hkim579@bloomberg.netTo contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Joanna OssingerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Indian Indexes Are in the Green
    Market Realist21 days ago

    Indian Indexes Are in the Green

    Indian indexes were the best-performing ones in Asia today. The S&P BSE Sensex gained 0.4% to close at 39,592 while the NSE Nifty 50 gained 0.43% to close at 11,848. Out of the 30 stocks in Sensex, 19 gained, and the remaining lost. With 1.64% gains, HDFC Bank (HDB) was one of the top gainers.

  • Global Tech Is Weaker Than It Looks
    Bloomberg22 days ago

    Global Tech Is Weaker Than It Looks

    (Bloomberg Opinion) -- Ten months ago, I warned that storm clouds were brewing over the global technology industry. The situation today is much worse.Back then, a U.S.-China trade war was more risk than reality, Apple Inc.’s pending iPhone update held promise, and central banks were still in tightening mode. Yet inventories at the end of June 2018 had climbed to the highest since the financial crisis a decade earlier and a sector-wide slowdown was looming.At the time, the Pollyannas were louder than the Chicken Littles. The next iPhone had yet to launch and Christmas shopping season was coming, argued the optimists.Since then, global technology companies have issued loud warnings about lost sales due to U.S. actions against Huawei Technologies Inc. In short, because the U.S. is restricting what can be sold to the Chinese giant, the company and its suppliers are cutting orders. This is causing a ripple effect from semiconductor materials supplier IQE Plc to chip designer Broadcom Inc.But there’s something you need to know about the Huawei effect: It isn’t the cause of this technology recession. If anything, the company is the reason why the situation didn’t worsen earlier. The U.S. war on Huawei propped up the tech sector, notably semiconductors, over the past year.Let me explain. Immediately after the Trump administration in May blacklisted Huawei from buying U.S. components, Bloomberg News reported that the maker of telecommunications equipment and smartphones had been been stockpiling components in anticipation of some kind of action. Chairman Ren Zhengfei saw his own storm brewing and started saving for the rainy day that came on May 17.This tells us that some proportion of global component demand over the past year wasn’t led by end-product sales, but merely by shelf-stocking. More significantly, what revenue component makers did see was probably a false signal, pointing to demand that didn’t exist.These suspicions were confirmed earlier this month when Mark Liu, chairman of made-to-order chipmaker Taiwan Semiconductor Manufacturing Co., told me that he wasn’t sure how much of his company's recent revenue had gone to supplying Huawei’s end-product demand versus building the Chinese company’s inventory. Almost every technology company is a client of TSMC. If Liu, who has the broadest and deepest picture of the global tech sector, can’t make out the difference between demand and inventory build, then you can be sure he’s not alone.There’s also solid data to show the scale of Huawei’s stockpiling. Total inventories climbed 33% last year. Its stash of components – measured as raw materials and works in progress – jumped 76%. At even its most optimistic, there’s no way that Huawei expected 76% revenue growth this year.Which brings us back to the sector as a whole.Here’s an update of the numbers compiled 10 months ago, based on nine leading technology hardware companies and charted by my colleague Elaine He. The results aren’t heartening:With few exceptions, inventories – measured in dollar terms or days outstanding – climbed since June 30, 2018, and were unequivocally higher than two years ago. The revenue slowdowns that have affected every corner of the hardware sector this year make this buildup ominous.Of even greater concern are data pointing to prolonged cash conversion cycles, a measure of how long companies take to turn manufactured goods into money. The only firm to see a solid dip is Apple, and that’s because it tends to generate revenue from customers before having to pay suppliers. Both TSMC and iPhone assembler Hon Hai Precision Industry Co. (aka Foxconn) have said they hold inventory on their books for their key client. Were it not for that fact, Apple’s rising inventory days outstanding would probably be even higher.A major reason for Hon Hai posting weak earnings in the first quarter was inventory provisions. Those can be reversed if products sitting on shelves get sold to consumers, Hon Hai CFO David Huang told me this month. But shipping an already-made device to meet demand means you don’t need to manufacture a new phone, which in turn means no need to buy components from suppliers, and so forth.That’s the situation we’re in now: plenty of inventory, false signals from the Huawei effect, and a pending global economic slowdown that’s likely to suppress demand. If that doesn’t make make you worry about the state of global technology hardware, then I applaud your optimism. To contact the author of this story: Tim Culpan at tculpan1@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Chipmakers to See Slow Phone Sales: Morgan Stanley
    Investopedia22 days ago

    Chipmakers to See Slow Phone Sales: Morgan Stanley

    Deceleration in the smartphone market isn't going anywhere, to the detriment of some of Apple Inc.'s (AAPL) major suppliers, according to one team of analysts on the Street who has become more bearish on semiconductor plays such as Skyworks Solutions Inc.

  • Does "Freedom Weighting" Make a Better EM ETF?
    Zacks26 days ago

    Does "Freedom Weighting" Make a Better EM ETF?

    We discuss factor investing and a new freedom weighted emerging markets ETF.

  • Foxconn Game of Thrones Looms as Its King Abdicates
    Bloomberg28 days ago

    Foxconn Game of Thrones Looms as Its King Abdicates

    (Bloomberg Opinion) -- On June 11, for the first time in history, Foxconn Technology Group held an investor relations conference for its flagship company.That’s the good news. The bad news is what the moment portends: The world’s largest electronics manufacturer is about to be left without a CEO.It took founder Terry Gou’s pending departure from Hon Hai Precision Industry Co. to face its stakeholders beyond the legally mandated annual shareholders’ meeting. Gou didn’t even bother to turn up, choosing instead to continue his campaign to become Taiwan’s president.After’s Gou’s departure, which could be as soon as Friday, Foxconn will have a new chairman, and the CEO role will be replaced by a committee of nine. For the past 45 years Gou has been the sole decider and face of the company. So while this major shift in leadership brings sudden and long-overdue transparency, it also leaves his sprawling company – which spans more than a dozen nations, up to one million workers, and an all-star client list – in the hands of a committee and without a chief.I’ve long been skeptical about the company and its future, with or without Gou. As the global tech industry faces both a macroeconomic slowdown and the fallout from U.S.-China trade tensions, Foxconn finds itself caught in the crossfire.The comportment of the company’s new management now allays some of those concerns. At the investor event and a telephone conference that followed, these executives – many of whom had rarely spoken publicly – succinctly fielded questions about the challenges of running Foxconn in the age of President Donald Trump, the possibility of moving iPhone production out of China, and the company’s need to transform. That’s a refreshing change from the waffling, disjointed answers Gou usually gives to the media.Still, this doesn’t mean everything is sorted. The debate over Foxconn’s next chairman, which has been raging for more than a decade, continues. Group CFO Huang Chiu-lian, known as Money Mama, was among the names tipped to take control. Heads of various divisions are also being considered.It’s my belief that Young Liu, currently head of Foxconn’s chip division, will get that job. (Huang isn’t in the running since she won’t be on the new board). Getting the chairmanship, though, doesn’t mean taking Foxconn’s Iron Throne. Rather, this management-by-committee strategy sets the company up for possible infighting among various division chiefs, some of whom are part of that inner circle.Any executive decision inevitably becomes a question of resource allocation. Since Foxconn is notoriously tight-fisted, divisions will likely need to compete with each other or engage in back-room horse trading to get what they want.If the collegiality on display at the new team’s first public outing dissolves, then the executive lineup is likely to become a war of attrition. When Gou floated the idea of retirement a dozen years ago, he talked about winnowing his list down from more than 35 to less than 10 possible successors. But he’s never groomed anyone, unlike compatriot Morris Chang, who spent considerable time training up his successors for the company he founded and chaired, Taiwan Semiconductor Manufacturing Co. More than a few people who follow Foxconn have told me they think that most lieutenants will retire pretty quickly if they don’t get clear control over the company once Gou steps down. As some depart, competition to take the reins may ensue. My fear is that a series of departures and jostling will weaken Foxconn just when it needs stability and a single leader. Once that shakes out, any eventual winner may find that there’s no throne to take, let alone dragons to fight with.To contact the author of this story: Tim Culpan at tculpan1@bloomberg.netTo contact the editor responsible for this story: Rachel Rosenthal at rrosenthal21@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Market Realistlast month

    Indian and Indonesian Indexes Stay Steady, but Taiwan Index Falls

    Just like some of the other Asian indexes, Indian indexes closed almost flat today. The S&P BSE Sensex lost four basis points, while the NSE Nifty 50 gained seven basis points.

  • China chip industry insiders voice caution on catch-up efforts
    Reuterslast month

    China chip industry insiders voice caution on catch-up efforts

    SHANGHAI/HONG KONG (Reuters) - Since the U.S. government put Huawei Technologies Co Ltd on a trade blacklist, effectively banning American firms from doing business with it, China's leaders have spoken boldly about achieving self-sufficiency in the critical semiconductor business. The prospectuses of Chinese chip companies preparing to list on a new tech-focussed stock exchange are blunt, characterizing the domestic industry as "relatively backward", lacking in talent and requiring "a long time to catch up". Chinese chip engineers tell tales of local manufacturing that just is not up to snuff, while analysts point out the many areas where China remains reliant on technology from the United States, Taiwan, South Korea, Japan and Europe, with some questioning whether government policies are in the right place.

  • Taiwan and Thailand Indexes Rise as Other Asian Indexes Fall
    Market Realistlast month

    Taiwan and Thailand Indexes Rise as Other Asian Indexes Fall

    Asian Markets Turn Bearish as China Says It's Not Afraid to Fight(Continued from Prior Part)Indian indexesAfter rising yesterday, both the key Indian indexes fell today. The S&P BSE Sensex retreated by 0.48% to end the day at 39,756.81. The

  • Keywise Capital Management’s Return, AUM, and Holdings
    Insider Monkeylast month

    Keywise Capital Management’s Return, AUM, and Holdings

    Keywise Capital Management is a Hong Kong-based hedge fund that invests in public equity companies in Greater China markets, mostly China, Taiwan, Hong Kong, Singapore, and Chinese ADRs in the US. The fund focuses on under-researched public companies of mid-market caps. In addition to its headquarters in Hong Kong, this asset management firm provides another […]

  • Is It Time to Hold Your Horses on AMD Stock?
    Zackslast month

    Is It Time to Hold Your Horses on AMD Stock?

    AMD stock has been soaring over the past month, so it's worth taking a look at whether there's more upside to the stock.

  • Is Taiwan Semiconductor Mfg. Co. Ltd.  (TSM) A Good Stock To Buy?
    Insider Monkeylast month

    Is Taiwan Semiconductor Mfg. Co. Ltd. (TSM) A Good Stock To Buy?

    Investing in small cap stocks has historically been a way to outperform the market, as small cap companies typically grow faster on average than the blue chips. That outperformance comes with a price, however, as there are occasional periods of higher volatility. The last 8 months is one of those periods, as the Russell 2000 […]

  • 5 Stocks Boosting Book Value
    GuruFocus.comlast month

    5 Stocks Boosting Book Value

    According to the GuruFocus All-In-One Screener, the following companies have grown their book value per share (BV/S) over the past decade. BV/S is calculated as total equity minus preferred stock, divided by shares outstanding. Since the BV/S may not reflect the company's true value, some investors check the tangible book value to confirm their investment ideas.

  • Reuterslast month

    UPDATE 2-Huawei denies report that orders to key suppliers cut after U.S. blacklisting

    Huawei Technologies Co Ltd has cut or canceled orders to major suppliers of components for its smartphones and telecom equipment following its U.S. blacklisting, the Nikkei reported, claims that were rejected by the Chinese firm. Taiwan Semiconductor Manufacturing Co Ltd (TSMC) confirmed that orders from Huawei have declined after U.S. President Donald Trump imposed a ban on the Chinese company on national security grounds, according to the report https://asia.nikkei.com/Spotlight/Huawei-crackdown/Huawei-cuts-orders-to-key-suppliers-after-US-blacklisting.

  • The Zacks Analyst Blog Highlights: Fujifilm, NXP Semiconductor, Taiwan Semiconductor Manufacturing, XILINX and Advanced Micro Devices
    Zackslast month

    The Zacks Analyst Blog Highlights: Fujifilm, NXP Semiconductor, Taiwan Semiconductor Manufacturing, XILINX and Advanced Micro Devices

    The Zacks Analyst Blog Highlights: Fujifilm, NXP Semiconductor, Taiwan Semiconductor Manufacturing, XILINX and Advanced Micro Devices

  • 5 Large-Cap Semiconductor Stocks to Buy Right Now
    Zacks2 months ago

    5 Large-Cap Semiconductor Stocks to Buy Right Now

    All 5 stocks in this article have a Zacks Rank 2 (Buy) or better, with the sole exception of Advanced Micro Devices (AMD).