Favorable government initiatives and the high consumption of consumer electronics, the production of electric and autonomous vehicles, mobile phones, medical equipment, and various other products are poised to drive the growth prospects of the semiconductor industry.

Given this backdrop, let us probe into the semiconductor stock Taiwan Semiconductor Manufacturing Company Limited (TSM – Get Rating) and explore whether the chip stock could be an ideal portfolio addition or not.

The Semiconductor Industry Association (SIA) recently announced that global semiconductor industry sales were $40 billion during April 2023, an increase of 0.3% compared to March. The global semiconductor market is projected to reach $1.38 trillion in 2029, exhibiting a CAGR of 12.2% between 2022 and 2029.

Industrial tailwinds should bode well for the company. Headquartered in Hsinchu City, Taiwan, TSM provides integrated circuits and other semiconductor devices internationally.

On June 8, TSM announced the opening of its Advanced Backend Fab 6, the company’s first all-in-one automated advanced packaging and testing fab to realize 3DFabric integration of front-end to back-end process and testing services. This would also enable TSM to flexibly allocate capacity for TSMC 3DFabric advanced packaging and silicon stacking technologies.

Moreover, it would support AI, mobile applications, and other products and help customers achieve product success and win market opportunities. In addition to unleashing an exceptional innovation, it would enhance TSM’s chances of becoming an important partner that customers trust in the long term.

On April 21, the company signed a 20,000 GWh renewable energy joint procurement contract with ARK Power, a subsidiary of ARK Solar Energy. The agreement enables TSM suppliers and subsidiaries to…

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