Semiconductor stocks finished largely higher on Friday on reports that STMicroelectronics ( NYSE: STM ) and GlobalFoundries ( NASDAQ: GFS ) were set to announce plans next week to build a new chip factory in France and Taiwan Semiconductor ( NYSE: TSM ) reported strong monthly results.
Bloomberg, citing people familiar with the matter, noted that the new plant from STMicroelectronics ( STM ) and GlobalFoundries ( GFS ) will use government funds and will be the second project from the European Union’s Chips Act, a $43.8B plan to boost semiconductor production on the continent.
In March, Intel ( INTC ) announced plans to expand its chip manufacturing in Europe over the next decade, including building an $18.6B mega fab in Magdeburg, Germany.
STMicroelectronics ( STM ) gained nearly 1.5% to $31.24 , while GlobalFoundries ( GFS ) shares rose nearly 4.5% to $45.26 .
The report comes on the same day that Taiwan Semiconductor ( TSM ) reported net revenue of ~NT$175.87B in June, up 18.5% year-over-year, easing investor concerns about the semiconductor industry.
Revenue for January through June 2022 totaled NT$1,025.22B, marking a 39.6% increase from prior year period.
Shares of Taiwan Semi ( TSM ), which competes with GlobalFoundries ( GFS ), finished up 1% to $81.51 .
The positive news from STMicro ( STM ), GlobalFoundries ( GFS ) as well as Taiwan Semiconductor ( TSM ) have added to relief in recent days that the semiconductor industry is undergoing cyclical weakness.
Advanced Micro Devices ( AMD ) and Nvidia ( NVDA ) finished fractionally flat, while Marvell Technology ( MRVL ) and Qualcomm ( QCOM ) rose slightly more than 1%.
On Thursday, Samsung Electronics ( OTC:SSNLF ) estimated its April-June quarter resulted in its best profit since 2018, thanks in part to strong sales of memory chips to server customers.
Samsung ( OTC:SSNLF ) said it likely generated 77.78T won, or the equivalent of $59.8B, in revenue for the period, up 21% from a year ago and in line with expectations. Samsung ( OTC:SSNLF ) estimated that generated an operating profit of 14T won, or $10.7B, up 11% on a year-over-year basis, but below estimates of 14.45T won.
The results come after Micron Technology ( MU ) recently offered weak guidance for its upcoming quarter, citing weakness in all of its businesses except for server DRAM memory chips.
Last month, STMicroelectronics ( TM ) and Sensory announced a collaboration that will enable the STM32 microcontroller user community to develop and prototype intuitive voice-based user interfaces for a wide range of smart products .
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Semiconductors rise as STMicro, GlobalFoundries, Taiwan Semiconductor ease worries