NEW YORK (TheStreet) -- Taiwan Semiconductor Manufacturing (TSM) shares are up 1.3% to $22.72 on Thursday following reports that the company has begun shipping microprocessors to Apple (AAPL) for use in its smartphone and tablet devices.
Some analysts were skeptical that Taiwan Semiconductor could deliver on such a large order after the company came to terms with Apple last year, displacing Samsung (SSNLF) which had previously been Apple's largest microprocessor supplier.
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Analysts estimate that the Apple contract would account for 10% of Taiwan Semiconductor's total revenue in 2014. That number could jump to 15% next year as the companies agreed to work on more advanced chips in 2015.
Yesterday the company, the world's largest contract chip maker by revenue, also reported a 12% year over year rise in sales during the month of June.
TheStreet Ratings team rates TAIWAN SEMICONDUCTOR MFG CO as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TAIWAN SEMICONDUCTOR MFG CO (TSM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, growth in earnings per share and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."