Tencent Reportedly Acquired TSMC, Tencent Stock Prices Start Rising

As per the latest reports, Tencent has been reportedly acquired by a major tech company from Taiwan. The sources reveal that the Chinese tech behemoth has been acquired by Taiwan Semiconductor Manufacturing Company (TSMC). TSMC is the largest chipmaker in the entire world and it is known for supplying semiconductors to major companies from all over the world.

According to market observers and analysts, it is one of the largest and most valuable acquisitions in the Asian market history. With the acquisition of Tencent, TSMC has also engraved its name in the year 2021 being the most valuable firm in Asia.

As per the market observers, it was one of the smartest moves TSMC has made at a time when the Chinese market is facing a downfall. Since the beginning of 2021, the Chinese Government and regulatory authorities have adopted an aggressive stance on tech giants based in the country.

The Chinese Government as well as the regulators are cracking down on major tech giants based in China. The situation is proving to be very dire for the major tech firms in China such as Alibaba and Tencent. As a result of the regulatory crackdowns, the market valuation of major companies in China has started dipping.

Although full of risks, foreign companies have started making their moves in acquiring China-based companies ready to be acquired. Turns out TSMC landed itself a jackpot deal and ended up acquiring Tencent in the process.

At present, TSMC is known to be one of the major semiconductors provides for companies such as Apple, which has the largest market valuation in the entire world. The sources reveal that the deal between the executives of TSMC and Tencent had already taken place back in early August.

Similarly, TSMC had acquired Tencent there and then, but kept it a secret until they were ready to make a public announcement. After the acquisition of Tencent, TSMC is now the most valued company in the entire Asian sector. By acquiring Tencent, the market capitalization of TSMC has exceeded the $538 billion market capitalization figure.

Prior to TSMC’s rise, it was indeed Tencent with the highest market capitalization, which was $536 billion. On number three, it was Alibaba with a market capitalization of $472 billion. Now, TSMC has the number one spot in the Asian market. With constant acquisitions taking place in the Chinese market, there are chances TSMC or other foreign companies may end up increasing their market capitalization.

Since the announcement of the acquisition, the market share price for Tencent has experienced a 0.28% increase. At the time of writing, the share price for Tencent is hovering at 436.20 Hong Kong dollars.

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