Zhitong Financial APP learned that Loop Capital, an investment company, began to$Taiwan Semiconductor Manufacturing Co Ltd (TSM.US) $Conduct coverage research and point out that the company has benefited from "long-term structural growth" in a number of areas. Analyst Charles Park gave Taiwan Semiconductor Manufacturing Co Ltd a "buy" rating and pointed out that the company had benefited from the rise of the 5G, Internet of things, artificial intelligence / machine learning, cloud computing and electric car markets.

"while the cyclical peak driven by falling inventories in the semiconductor industry is likely to be revised in the near future, we believe Taiwan Semiconductor Manufacturing Co Ltd's core business will remain strong." Park wrote in a client report, adding that its investment in capital expenditure should lead to higher revenue and earnings growth.

Park has set Taiwan Semiconductor Manufacturing Co Ltd's target share price at T $600, which means the stock has 20 per cent room to rise from its current share price. Earlier this year, Wei Zhiqiang, Taiwan Semiconductor Manufacturing Co Ltd's chief executive, said the company would have capital expenditure of between $40 billion and $44 billion in 2022.

Park expects Taiwan Semiconductor Manufacturing Co Ltd to have capital expenditure of $110 billion between 2022 and 2024, almost equivalent to the company's total capital expenditure over the past eight years. In addition, Park points out that its earnings are expected to grow 46 per cent this year and 12 per cent next year, and its free cash flow will more than triple in 2024 compared with 2021.

While some analysts believe the semiconductor industry may be close to saturation, Park believes the industry is still in "the early stages of the next big growth cycle", led by increased demand for chips in the above-mentioned technology areas (5G, Internet of things).

In addition, earlier this month, it was reported that both Taiwan Semiconductor Manufacturing Co Ltd and Samsung had problems in purchasing manufacturing equipment to make chips amid a global shortage of semiconductors.