Latest news with #TaiwanSemiconductorManufacturing
Bloomberg
16 hours ago
- Business
- Bloomberg
TSMC Shares Trail Smaller Peer UMC After High-Dividend ETF Snub
Taiwan Semiconductor Manufacturing Co. 's stock is lagging smaller rival United Microelectronics Corp. after being brushed aside by some of Taiwan's biggest yield-focused exchange-traded funds. Shares of TSMC, the world's largest contract chipmaker, have dropped 3.7% this year, compared to an 11% gain for UMC, according to data compiled by Bloomberg. UMC's dividend yield of more than 6% has given it substantial exposure to Taiwan's high-dividend ETFs, which collectively manage more than $44 billion in assets, Bloomberg data show.
Yahoo
3 days ago
- Business
- Yahoo
Is iShares Emerging Markets Equity Factor ETF (EMGF) a Strong ETF Right Now?
The iShares Emerging Markets Equity Factor ETF (EMGF) was launched on 12/08/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Emerging Market ETFs category of the market. The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment. Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns. However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta. This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics. While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results. The fund is managed by Blackrock, and has been able to amass over $887.40 million, which makes it one of the larger ETFs in the Broad Emerging Market ETFs. This particular fund, before fees and expenses, seeks to match the performance of the MSCI Emerging Markets Diversified Multiple-Factor Index. The STOXX Emerging Markets Equity Factor Index (USD) composes of stocks of large and mid-capitalization companies in emerging markets that have favourable exposure to target style factors subject to constraints. Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio. Annual operating expenses for this ETF are 0.26%, making it one of the cheaper products in the space. The fund has a 12-month trailing dividend yield of 3.50%. Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings. Taking into account individual holdings, Taiwan Semiconductor Manufacturing accounts for about 8.61% of the fund's total assets, followed by Tencent Holdings Ltd and Alibaba Group Holding Ltd. EMGF's top 10 holdings account for about 25.23% of its total assets under management. The ETF has gained about 14.17% so far this year and was up about 14.25% in the last one year (as of 06/17/2025). In the past 52-week period, it has traded between $41.37 and $51.83. The fund has a beta of 0.59 and standard deviation of 16.34% for the trailing three-year period. With about 611 holdings, it effectively diversifies company-specific risk. IShares Emerging Markets Equity Factor ETF is a reasonable option for investors seeking to outperform the Broad Emerging Market ETFs segment of the market. However, there are other ETFs in the space which investors could consider. Vanguard FTSE Emerging Markets ETF (VWO) tracks FTSE Emerging Markets All Cap China A Inclusion Index and the iShares Core MSCI Emerging Markets ETF (IEMG) tracks MSCI Emerging Markets Investable Market Index. Vanguard FTSE Emerging Markets ETF has $88.55 billion in assets, iShares Core MSCI Emerging Markets ETF has $90.54 billion. VWO has an expense ratio of 0.07% and IEMG charges 0.09%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Emerging Market ETFs. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares Emerging Markets Equity Factor ETF (EMGF): ETF Research Reports iShares Core MSCI Emerging Markets ETF (IEMG): ETF Research Reports Vanguard FTSE Emerging Markets ETF (VWO): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Japan Forward
4 days ago
- Business
- Japan Forward
Japan's Economic Security Moment: Turning Resilience into Strategic Advantage
When Prime Minister Shigeru Ishiba unveiled a ¥10 trillion ($65 billion USD) tech sovereignty investment package last November, he did more than shower subsidies on semiconductor fabs and artificial intelligence (AI) startups. He signaled that, in 2025, the front line of national defense runs through 2‑nanometer clean rooms in Hokkaido and quantum test beds in Kawasaki, not merely destroyers in Yokosuka. The tech sovereignty program is projected to mobilize up to ¥50 trillion ($347 billion) in public-private investment over the next decade to support domestic microchip production, a cornerstone of high-tech supply chains. That is an order of magnitude larger than the deal that brought Taiwan Semiconductor Manufacturing to Kyushu under Ishiba's predecessor, Fumio Kishida, and is a marker of Tokyo's new resolve on economic security. Semiconductor chips on a board (©Reuters) Prosperity unravels when chokepoints fail. Pandemic shutdowns idled Japanese car lines; Red Sea drone attacks recently drove 40-foot container (FEU) rates above $7,000; and the Sino‑American trade crossfire has shown how a just single bottleneck — lithography tools, gallium exports, even GPS signals — can be weaponized. Japan, which imports 90% of its primary energy and ranks fifth in world merchandise trade, sits squarely in the blast radius. Tokyo has reacted, but mainly with patchwork measures. The 2022 Economic Security Promotion Act created new screening powers and four programs for "Specified Important Materials," while the Japan-US Economic 2 + 2 ministerial has convened two ministerial meetings — in 2022 and 2023 — and a vice-ministerial session in 2024. What is still missing is a doctrine that converts defensive resilience into offensive relevance. Economic security is not an elite abstraction. For shrinking economies in Japan's regions, strategic investment in semiconductors, pharmaceuticals, and green tech is a lifeline. Reliable drugs, stable energy, and high‑value local jobs turn the concept into something citizens can feel. Rapidus' factory aiming for the domestic production of next-generation semiconductors. (March 2025, Chitose City, Hokkaido) To get the most out of its new economic-security push, Japan should take the following actions. Create an Economic Security Council, chaired by the prime minister, integrated with the Bank of Japan and empowered to veto any FDI, ODA, or R&D project that flunks a strategic‑risk screen. The advisory body Ishiba convened in January was a start; now give its insights statutory teeth. Ring‑fence at least 0.5％ of GDP for mission‑driven consortia in semiconductors, quantum technologies, AI‑enabled robotics, and green biotech. Tie every subsidy to technology‑readiness milestones and a commitment to reskill domestic engineers — offsetting the effects of Japan's outbound brain drain, as seen in the growing number of chip designers being recruited by South Korean and Taiwanese rivals. Fold the Economic 2 + 2, Quadrilateral Security Dialogue (Quad) Critical‑Tech Partnership and Japan-European Union Connectivity Initiative into a Trusted Supply‑Chain Compact. Members would pool critical‑mineral stockpiles, align export‑control lists, and co‑fund strategic plants in ASEAN countries, South Asia, and Latin America — CPTPP‑plus for indispensable goods. Tokyo's planned Japan–Philippines nickel processing venture (initial budget: $350 million) could serve as the compact's first flagship. Standards bodies, not naval fleets, will anchor tomorrow's values. Japan should leverage its Beyond 5G/6G Promotion Consortium to file joint 6G proposals with the European Union at the International Telecommunications Union ITU‑R WP 5D, chair the OECD AI‑Safety Network, and launch a Kyoto Process on cross‑border data rules. Kyoto's name recalls the city's role in value‑driven global agreements — from climate to privacy. Full decoupling from a market that still buys one‑fifth of Japan's exports is fantasy; blind faith in benign interdependence is folly. Keep climate‑friendly consumer sectors open, close dual‑use tech and critical infrastructure. Mandate "China‑plus‑one" production for all goods under the 2022 Act and expand the Japan Bank for International Cooperation (JBIC) de‑risking facility so mid‑sized suppliers can afford to relocate. The semiconductor start‑up Rapidus shows how it can work: the government's ¥802.5 billion ($5.6 billion) top‑up, approved on March 31, lifted total public support to ¥1.8 trillion ($12.5 billion ) and launched a 2‑nm pilot line in Hokkaido on April 1 — anchoring a critical chip node on democratic soil. The second Trump administration's revival of America First — marked by unilateral tariffs, bilateral dealmaking and escalating demands on allies — must be met with diversification, not deference. By convening coalitions — G7 on outbound investment screening, the Quad on undersea cables, the CPTPP on digital trade — Tokyo can keep Washington inside rules‑based tents, even as the White House prioritizes transactional diplomacy. Prime Minister Shigeru Ishiba and US President Donald Trump meet in the Oval Office, the White House, on February 7. (©Prime Minister's Office) Redundancy : no single country supplies more than 20% of Japan's gallium, graphite, or antibiotics. : no single country supplies more than 20% of Japan's gallium, graphite, or antibiotics. Re‑/ally‑shoring : domestic fabs meet 40% of chip demand; allied and like-minded partners supply the rest. : domestic fabs meet 40% of chip demand; allied and like-minded partners supply the rest. Rule writing: Japan chairs or co‑chairs at least five working groups in the ITU, ISO (International Organization for Standardization), or IEC (International Electrotechnical Commission) by 2027. Meet those targets and resilience becomes leverage: a nation that secures its own inputs can credibly secure them for partners, turning supply chain security into statecraft. Economic security — once technocratic minutiae — is now the arena where great power rivalry is waged and where middle powers can still shape the outcome. Japan's manufacturing heritage, technological depth, and diplomatic dexterity prove that open societies can master chokepoints without closing their economies. In 1949, Shigeru Yoshida rewrote Japan's grand strategy around exported goods and imported security guarantees. And in 2025, Shigeru Ishiba can update that bargain: anchor prosperity in secure, values‑based networks that Japan itself helps design. The choice is stark. Become a rule‑setter for the new era or a hostage to someone else's chokepoints. The window to act is closing fast. Authors: Takahiro Tsuchiya and Kazuto Suzuki Takahiro Tsuchiya, PhD, is a professor at the Kyoto University of Foreign Studies. Kazuto Suzuki, PhD, is a professor at the University of Tokyo.
Business Times
4 days ago
- Business
- Business Times
Trump tax bill to boost Biden's semiconductor tax credit to 30%
[WASHINGTON] The Senate's draft tax bill calls for temporarily increasing an investment credit for semiconductor manufacturers, enhancing a subsidy for chipmakers to build factories in the US. The measure would increase the size of the tax credit to 30 per cent of investments in plants, up from 25 per cent, giving chipmakers further incentive to spend on new facilities before the tax break expires at the end of 2026. The Chips and Science Act was signed by president Joe Biden in 2022 as a pillar of his domestic policy, with a goal of using government support to bring semiconductor manufacturing that had shifted to Asia back to US soil. It included US$39 billion in grants along with up to US$75 billion in loans – but the law's most lucrative benefit was its 25 per cent tax credit on projects. Major beneficiaries include Intel, Taiwan Semiconductor Manufacturing, Samsung Electronics and Micron Technology. In almost every case, tax credits will account for the greatest share of Chips Act incentives going to any one company. Trump has called for repealing the Chips Act, though lawmakers in both parties have shown little desire to eliminate subsidies that provide high-paying jobs in their districts. Administration officials, including Commerce Secretary Howard Lutnick, say they are reworking agreements with semiconductor makers to encourage bigger investments without additional taxpayer money. Senators are hoping to send the tax bill – which calls for trillions in US dollars worth of tax cuts for households and businesses – to Trump's desk by the Jul 4 holiday. The bill is likely to undergo revisions in the Senate before it receives a floor vote. The House will also have to approve the final version before it can become law. BLOOMBERG
Yahoo
4 days ago
- Business
- Yahoo
The Best Stocks to Buy With $1,000 Right Now
Nvidia's growth is far from complete. Taiwan Semiconductor Manufacturing is an excellent balance of growth and value. Alphabet's stock trades at a steep discount to the market. 10 stocks we like better than Nvidia › Even though the market recovered substantially from its lows during April, plenty of stocks are still at appealing valuations right now. The economy hasn't been impacted by tariffs so far, and demand for AI-related products hasn't slowed a bit. If you've got $1,000 to deploy, I think you will be incredibly happy with the price you've bought these stocks at three to five years down the road. Nvidia (NASDAQ: NVDA), Taiwan Semiconductor Manufacturing (NYSE: TSM), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are at the top of my shopping list right now. Each of these investments brings something different to the table and creates a balanced approach to AI. Of these three, Nvidia represents the growth option. Nvidia's graphics processing units (GPUs) are the go-to computing device for nearly every AI hyperscaler. As a result, Nvidia's revenue boomed over the past few years and is still rapidly growing. In Q1 FY 2026 (ending April 28), its revenue rose 69% year over year to $44 billion, and revenue is projected to rise to $45 billion in Q2, indicating 50% growth. Although that's impressive, growth could be further bolstered by a trade deal with China that allows Nvidia to sell its chips there again or a significant AI buildout in Europe, which appears to be gaining steam recently. The stock isn't cheap at 33 times forward earnings, but that's the price you must pay to own a stock posting market-leading growth. We've only scratched the surface of the computing power necessary to run an economy assisted by AI, which will boost Nvidia's growth over the long run. There's still plenty of growth ahead for Nvidia, and the demand signals it's sending to Taiwan Semiconductor Manufacturing back that up. Taiwan Semiconductor Manufacturing (TSMC) is a critical supplier to Nvidia, as Nvidia doesn't have the facilities to manufacture its own chips. So it outsources that work to a chip foundry like TSMC -- the world's top semiconductor foundry, boasting cutting-edge technology and best-in-class execution. Nearly all of the big tech companies are customers of TSMC in one way or another, and its neutral position in the chip world gives it a great view into the future, as chip orders are often placed years in advance. This allows TSMC's management to make accurately forecast its revenue. The most recent estimate the company gave investors when laying out guidance for 2025 was that its expects its AI-related to revenue to grow at a 45% compound annual growth rate (CAGR) over the next five years, which will help bolster overall revenue growth of a 20% CAGR over that same time frame. That's monster growth, although it will likely be slower than Nvidia's growth because TSMC also has a significant chunk of its business tied up in areas outside AI. TSMC's stock trades for a reasonable 22.5 times forward earnings, making it a balanced choice between growth and valuation. Alphabet isn't considered a growth company, although maybe it should be if you're only looking at profit growth. Alphabet, the parent company of Google, is invested in AI so that its advertising business can continue to maintain its dominance. There is a deep fear in the market that traditional search could be replaced by individuals only using generative AI to perform searches, but Google already bridged that gap by offering AI search overviews at the top of its Google search. This hybrid approach could be a winning development, leaving Google at the top of this critical space. However, the market doesn't buy this argument and has given Alphabet a steep discount to other big tech stocks. At 18.3 times forward earnings, Alphabet is far cheaper than the broader market, as measured by the S&P 500. The S&P 500 trades for 22.5 times forward earnings, so this deep discount makes Alphabet a value stock. However, if you look at its earnings growth, it doesn't seem like much of a value stock. In Q1, Alphabet's revenue rose 12% year over year, and its diluted earnings per share increased 49% year over year. That's growth stock performance from a value company, making Alphabet a clear no-brainer buy, especially if it can navigate the huge transition going on between AI and search. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Alphabet, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. The Best Stocks to Buy With $1,000 Right Now was originally published by The Motley Fool
