Benzinga - by Anusuya Lahiri, Benzinga Editor.
Key contract chipmaker Taiwan Semiconductor Manufacturing Co (NYSE:TSM) and Hon Hai Precision Industry Co. Ltd. (OTC:HNHPF), more popularly known as Foxconn and an Apple Inc (NASDAQ:AAPL) iPhone assembler, are guiding global supply chain shifts amid political and business changes.
TSMC, serving clients like Apple and Nvidia Corp (NASDAQ:NVDA), has expanded to vital automotive hubs like Dresden, Germany, near automotive giants like Volkswagen AG (OTC:VWAGY), Bayerische Motoren Werke AG (OTC:BMWYY), and Porsche.
This site attracts co-investors like Bosch and Infineon, ensuring that suppliers also establish operations nearby, Bloomberg reports.
Also Read: Taiwan Semi Rides AI Wave, Reports $7.1B Revenue In May
In Japan’s Kumamoto prefecture, TSMC partners with Sony Group Corp (NYSE:SONY), Toyota Motor Corp (NYSE:TM), and Denso to serve Japan’s automotive and electronics industries.
The Arizona facility was established due to client pressure and government incentives, attracting suppliers like LCY Chemical and Topco Scientific.
TSMC earmarked $44 billion in 2022, up from $31 billion in 2021, to boost its chip-making capacity. The chipmaker won $6.6 billion in U.S. chip funding, the Verge reports.
Foxconn, renowned for assembling Apple’s iPhones and Nvidia’s AI servers, is expanding its global footprint with 205 sites in 24 countries.
Foxconn’s expansions into Mexico, India, and Southeast Asia and partnerships with European industrial firms like Siemens and Stellantis show its strategic push into factory automation, transportation, logistics, aerospace, and alternative energy.
Price Action: TSM shares were trading higher by 2.59% to $168.66 at the last check on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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