TSMC Shares Rise As GlobalFoundries' $16B U.S. Expansion Boosts Semiconductor Sector

Shares of Taiwan Semiconductor Manufacturing Company Ltd. TSM are trading higher Wednesday as investor sentiment in the semiconductor space improved following news that GlobalFoundries will commit $16 billion to expanding its chip manufacturing operations in the U.S.

What To Know: The move by GlobalFoundries includes $13 billion for expanding fabrication and packaging capacity in New York and Vermont and another $3 billion for research and development. The investment targets technologies such as silicon photonics, gallium nitride power devices, and advanced chip packaging, critical components in meeting rising demand driven by AI, edge computing and data centers.

The company's investment comes on the heels of the launch of the New York Advanced Packaging and Photonics Center, the first U.S. facility dedicated to silicon photonics packaging. GlobalFoundries said its goal is to build energy-efficient, high-performance chips domestically to support next-generation computing needs.

Commerce Secretary Howard Lutnick framed the expansion as a key part of the Trump administration's reshoring strategy. The announcement also received public endorsements from industry leaders including Apple's Tim Cook, AMD's Lisa Su, and Qualcomm's Cristiano Amon, who highlighted the importance of a stable U.S. semiconductor supply chain.

TSMC's stock is climbing in response to broader bullish sentiment in the chip sector, as the GlobalFoundries news signals strong demand and increased government and private sector backing for domestic semiconductor growth.

Price Action: Taiwan semiconductor shares were up 2.65% at $202.83 at the time of writing, according to Benzinga Pro.

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