Analog Devices doubles down on partnership with TSMC

Analog Devices Inc (NASDAQ: ADI) just announced to have double downed on its partnership with Taiwan Semiconductor Mfg. Co. Ltd (NYSE: TSM). Shares of both firms are in the green at writing.

Why did Analog expand partnership with TSMC?

The extended collaboration secures long-term wafer capacity for the multinational through Japan Advanced Semiconductor Manufacturing Inc.

Kumamoto Prefecture based JASM is majority owned by TSMC. Vivek Jain – an executive vice president of $ADI said in a press release today:

Wall Street currently has a consensus “overweight” rating on shares of Analog Devices Inc that is up well over 20% versus its low in late October.

$ADI has a long-standing relationship with TSMC

Note that $ADI has been working with Taiwan Semiconductor Mfg. Co. Ltd. since the 90s.

Building on that partnership adds “capacity of fine-pitch technology nodes” for Analog Devices and will help it in terms of better “serving critical platforms across its business”, as per the press release on Thursday.  

The news arrives only a day after the semiconductor giant reported its financial results for the first financial quarter that came in slightly above Street estimates.

$ADI did, however, disappoint on guidance. It now expects revenue to print at $2.10 billion in Q2 – well below $2.30 billion that experts had forecast as Invezz reported here.