The Actual Recommended
OPTION TRADE: Buy TSM DEC 10 2021 120.000 CALLS at approximately $1.90.
(Actually bought for $1.69)
Semiconductor Weekly Options Trade
Monday, November 29, 2021
- Bought at 10:31 for $1.69
Wednesday, December 01, 2021
Total Potential Profit is 177%
It is very likely that a new
Taiwan Semiconductor Weekly Options
trade, if recommended, will be also successful.
Join us and see
what we are proposing!
The Original Major
Catalysts for the Taiwan Semiconductor Weekly
shortage in semiconductor chips has been wreaking havoc on the tech sector,
automotive industry, consumer electronics industry, and everything in between
thanks to massive supply chain snarl ups. The global Covid-induced supply
crunch for chips has badly hurt production across a number of industries,
ranging from cars to consumer appliances, smartphones and personal computers.
war between the United States and China has only served to make a bad situation
the global chip shortage has been a nightmare for businesses that make cars and
home appliances as well as people who buy them, semiconductor stock investors
are hardly complaining as they continue to see outsized gains on their
Taiwan Semiconductor Mfg. Co. Ltd. (ADR)(NYSE: TSM), the
world's largest 3rd party chip manufacturer, counts tech heavyweights such as
Apple Inc. (NASDAQ:AAPL), Nvidia and Qualcomm as its clients. In fact, TSMC is
so dominant that it accounted for 54% of total foundry revenue globally last
year as per TrendForce data.
Semiconductor Manufacturing's has obtained lead in advanced semiconductor
manufacturing over the past few years, and that lead only seems to be getting
bigger. Last month, rival Intel, one of the last chipmakers that manufactures
its own chips, admitted that it had run into a design flaw for its 7 nm
manufacturing process, and would be falling some 12 months behind schedule.
Intel had already ceded the leading-edge node lead to TSM in 2018, and that
lead only seems to be getting bigger.
manufacturing is hard, but TSM's years of experience making a wide variety of
semiconductors has given it a knowledge and process lead that other
manufacturers are struggling to match. In fact, rival GlobalFoundries threw in
the towel on competing with Taiwan Semi on the leading edge back in 2018. Intel
itself even hinted that it may outsource some manufacturing going forward,
likely to TSM. The U.S. government also recently subsidized TSM to build a new
fabrication plant in Arizona on national security grounds.
It seems TSM
has built itself a formidable moat in chip manufacturing.
The Major Catalysts for
the Taiwan Semiconductor Weekly
government approved 774 billion yen ($6.8 billion) in funding for domestic
semiconductor investment, backing up Prime Minister Fumio Kishida’s commitment
to make the nation a major global provider of essential computer chips.
spend part of the 617 billion yen package on a planned semiconductor plant by
Taiwan Semiconductor Manufacturing Co. and Sony Group Corp. in Kumamoto
prefecture. While the Ministry of Economy, Trade and Industry haven’t
elaborated on the exact amount that will be used for the project, it has said
it would pay “up to half” of the total investment needed for a project in this
category. For legacy chip production, aid for up to one-third of the total
capital expenditure will be provided, the ministry said.
With Eastern European Nations.....
looking at cooperating with three Eastern European countries on semiconductors,
a minister said on Thursday, a move likely to find favour in Brussels which has
been courting Taiwanese semiconductor firms to manufacture in the bloc.
Ming-hsin, who heads Taiwan's National Development Council, told reporters
following his visit to Slovakia, the Czech Republic and Lithuania last month
that all three countries had mentioned they wanted to work on chips with the
3. Wedgewood Partners Comments…..
manufactures some of the most advanced chips for fabless tech companies that do
not own their own foundries. Last month, Wedgewood Partners, an investment
management firm, had this to say about TSMC:
Manufacturing detracted from performance as the market attempted to price in a
downturn in the semiconductor cycle. Although there are some signs that memory
markets might be somewhat oversupplied, we have yet to see any tangible signs
that logic semiconductors – particularly at the leading-nodes where the Company
dominates – are in anything but short supply. In addition, and as a result of
this strong demand, the Company should be able to pass through price increases
to help fund very attractive returns on the rare leading-edge capacity that
serves this demand."
4. Price Increases…..
reportedly raising prices by 10% for advanced chips, while less advanced
chips–used commonly by automakers--would cost 20% more.
5. Analysts Thoughts.....
bank JPMorgan is recommending that investors pursue trends in the semiconductor
space that are more structural than cyclical. Structural trends tend to be
longer-term, permanent changes in an industry whereas cyclical trends are influenced
by the business cycle and tend to be short-lived.
recommends investing in very high-end computing segments, noting there’s
ongoing disruption in high-end computing globally, which used to be very
monolithic but is now being fragmented as more companies enter the space.
also recommends investing in semiconductor companies that focus on legacy,
long-tail technologies, such as TSM. This company manufactures a variety of
less advanced chips in areas like power management, microcontrollers, sensors
and other consumer-related segments.