Boston, MA 07/03/2014 (wallstreetpr) – Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) is a provider of integrated circuits and other semiconductor products used in computers and consumers electronics such as Smartphone and tablets.
Several analysts have been seen raising their estimates on the ticker ahead of its 2Q2014 reporting, which is scheduled for July 16. At least 27 analysts out of 32 covering the stock raised their estimates on Taiwan Semiconductor (NYSE:TSM) in June.
The excitement around the stock hinge on the opportunities expected from Apple Inc (NASDAQ:AAPL), which is one of the company’s top revenue contributors. The iPhone maker acquires chips used in its powerful smartphones and tablets from Taiwan Semiconductor (NYSE:TSM) and Samsung Electronics. However, there are several factors that could see Apple Inc sidestepping Samsung in future chip acquisitions.
Strained Relationship
Apple Inc and Samsung have been involved in several lawsuits that have helped to strain relationships between the two electronic giants. Although Apple Inc stills acquires chips from Samsung and ordered components worth about $10 billion from Samsung last year, the company is actively looking for an opportunity to ditch Samsung.
As Apple Inc considers abandoning Samsung, the company has been courting Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) and at one point it wanted to acquire a significant stake in the company or at least have the company set up a separate factory dedicated for its orders. However, the management of Taiwan Semiconductor declined such requests choosing to remain an independent chip manufacturer. However, the companies have been increasing their business ties, and the future can only get better.
Technological Superiority
In addition to the fact that the strained relationship is leading to big deals for Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) from Apple Inc, Taiwan Semiconductor also offers technologically superior chips that meet the needs of high-end device makers such as Apple Inc.
As Apple Inc prepares to launch iPhone 6 and other devices this and the next year, Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) presents an opportunity for investors that wish to tap into Apple Inc’s growth through its supply chain.
