USD 6.6B US subsidy boosts TSMC's Arizona chip plant expansionThe United States Department of Commerce has confirmed a substantial support package for Taiwan Semiconductor Manufacturing Co. (TSMC), earmarking a 6.6 billion USD subsidy to facilitate the establishment of a new semiconductor manufacturing base in Arizona. This initiative is further bolstered by up to 5 billion USD in low-interest loans from the government.
In response to this significant backing, TSMC has committed to an impressive expansion of its initial investment range, proposing an additional 25-65 billion USD towards this venture. The plan includes the construction of a third plant in Arizona by the end of the decade. This expansion enables TSMC to spearhead the production of the world's foremost 2-nanometre chips at its second Arizona facility, with production kick-off anticipated in 2028. The overarching investment exceeding 65 billion USD marks a historic milestone as the largest foreign direct investment in a new project on American soil.
Let's shift focus to the technical analysis of Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) shares and explore potential trading opportunities.
Examining the Daily (D1) chart, we have identified a solid support level at 133.73 USD and a resistance level at 182.87 USD, underpinning a robust uptrend as the stock aims to surpass its historical peak.
On the Hourly (H1) chart, engaging in long positions becomes appealing after a rebound from the 133.73 USD support level, targeting a short-term goal at 158.98 USD. For those with a medium-term outlook, maintaining long positions until reaching 170.74 USD presents a viable strategy.
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