Semiconductor Stocks Stage Strong Recovery
Taiwan Semiconductor Manufacturing Company (TSMC) saw its American depositary receipts climb 5.5% to $348.85 on Friday, while its Taipei-listed shares advanced 0.85% to NT$1,780. The rally occurred alongside significant gains across the semiconductor sector, with the PHLX Semiconductor Sector Index jumping nearly 6%.
Market Context and Upcoming Catalysts
The rebound comes after recent volatility in artificial intelligence-related stocks, with capital rotating from software to hardware providers. Semiconductor stocks have appreciated approximately 65% since early 2025, according to Reuters data, while software and services have declined 8%.
Attention now shifts to TSMC's January sales figures, scheduled for release on February 10. This data serves as an early indicator of foundry demand for both smartphone and AI server applications. The company recently projected 2026 revenue growth of nearly 30% in U.S. dollars, attributing this outlook to the expanding AI market.
Expansion Plans and Industry Dynamics
TSMC CEO C.C. Wei announced this week that the company will begin mass production of 3-nanometer chips in Japan, describing the move as establishing a "foundation for Japan's AI business." While local reports estimate the project's cost at $17 billion, TSMC has not officially confirmed this figure.
The chipmaker has allocated $52 billion to $56 billion for capital expenditures in 2026, primarily for factory construction and equipment. As noted by technology research analysts, TSMC benefits from its position as the primary manufacturer for leading chip designers including Nvidia, Broadcom, and AMD.
Macroeconomic Factors and Risks
Investors will monitor several key economic releases in the coming days, including the U.S. January jobs report on February 11 and January consumer price index data on February 13. These figures will influence expectations regarding Federal Reserve interest rate policy and could impact technology stocks.
While the University of Michigan's latest survey showed U.S. consumer sentiment at its highest level in six months, concerns about employment and inflation persist. Market observers note that any disruption in cloud computing investment or new geopolitical export restrictions could quickly reverse recent stock gains.
