CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Taiwansm

Special Reports - 15/11/2022

15 November, 2022

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

TAIWAN SEMICONDUCTOR COMPANY (#TAIWANSM) weekly market report based On 1 Lot Calculation:

GLOBAL SEMICONDUCTOR INDUSTRY:

  • THE SEMICONDUCTOR INDUSTRY IS CURRENTLY WORTH ~$555b: According to the most recent reports, the semiconductor industry is worth approximately half a trillion dollars. The size of the market in 2016 was ~$349b. Given the current value, the industry has grown 59% since 2016. Semiconductors are critical components in the move to digitisation of society, and are used in artificial intelligence, automotives and telecommunications amongst other things.

  • MARKET POTENTIAL: THE SEMICONDUCTOR INDUSTRY IS EXPECTED TO BECOME A $1T DOLLAR MARKET BY 2030: Analysts are forecasting, that at the current rate of growth, the semiconductor industry is expected to reach $1trillion in value. Analysts at McKinsey highlight that this represents an industry growth of 6%-8% a year. The computing and data storage segment of this market specifically, is expected to grow 55% until 2030.

The Company -

  • TAIWAN SEMICONDUCTOR COMPANY (TSMC) is the largest dedicated contract semiconductor manufacturer in the world. The company also handles manufacturing for semiconductor and integrated device companies that don't have their own manufacturing facilities. TSMC’s largest customers include NVIDIA, AMD, QUALCOMM and BROADCOM.

  • TSMC DOMINATES THE GLOBAL SEMICONDUCTOR MARKET: As of August 4, 2022, reports indicate that TSMC currently holds 53% of the Global Semiconductor Market, with other Taiwanese companies holding an additional 10%. This makes TSMC the largest manufacturer of Semiconductors on the planet.

  • EVENT TSMC MONTHLY SALES FOR NOVEMBER 2022 (CONFIRMED, DECEMBER 9, 2022): TSMC will report its monthly chip sales for November 2022. October sales represented a Year-on-Year increase for 56.3%, with this trend expected to continue for the November report. TSMC net revenue has already exceeded 2021 revenues by ~$8.41m, with two more months left to report for 2022.

  • NEWS - TSMC PLANS TO BUILD MORE MANUFACTURING PLANTS IN BOTH THE US AND JAPAN: TSMC is said to have broken ground on a second chip manufacturing plant in Arizona, spending $12b in the process. The company is also building a $7b plant in Japan. The company has highlighted that it is expanding its manufacturing capabilities to meet the extreme global demand for chips.

  • US SENATE PASSES BILL WORTH $52 BILLION: The move comes after the Biden administration pushed for standalone legislation to boost computer chip production. The bill, also known as the Chips-Plus bill, has been passed by the US senate and is set to be signed by president Joe Biden.

  • ANALYSTS OPINIONS: Deutsche Bank has a price target of $108.70, Goldman Sachs target is $89 while Morningstar targets $133. The Bloomberg Analyst Consensus has an average price target of $101.65.

  • STOCK PRICE ACTION: THE STOCK HAS HAD A DOWNWARD CORRECTION OF AROUND 56.80% FROM IT'S ALL- TIME HIGH OF $140.65. The stock has fallen to its lowest rate since July, 2020, to $59.00 (November 4, 2022). TSMC was last trading around $80.00, and if a full recovery follows recent all- time highs, the stock could see an upside of around ~75%. However the price could also decline further.

TSMC, November 15, 2022
Current Price: 80.00

Taiwansm

Weekly

Trend direction

UP

Resistance 3

115.00

Resistance 2

105.00

Resistance 1

95.00

Support 1

70.00

Support 2

60.00

Support 3

50.00

Example of calculation based on weekly trend direction for 1 Lot1

Taiwansm

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

35,000.00

25,000.00

15,000.00

-10,000.00

-20,000.00

-30,000.00

Profit or loss in €2

34,125.03

24,375.02

14,625.01

-9,750.01

-19,500.02

-29,250.03

Profit or loss in £2

29,841.07

21,315.05

12,789.03

-8,526.02

-17,052.04

-25,578.06

Profit or loss in C$2

48,118.00

34,370.00

20,622.00

-13,748.00

-27,496.00

-41,244.00

  1. 1.00 lot is equivalent of 1 000 units

  2. Calculations for exchange rate used as of 11:50(GMT+1) 15/11/2022

Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.

  • You may wish to consider closing your position in profit, even if it is lower than suggested one

  • Trailing stop technique can protect the profit – Ask your Client Manager for more detail

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