Morning Highlights: Oil Above $90, TSMC Remains Bullish on Demand for AI Chips, Samsung's Deal in the Pharmaceutical Sector

Oil prices have surpassed $90 per barrel amid the ongoing conflict between the U.S. and Iran and concerns about supplies through the Strait of Hormuz. Samsung Biologics announced the acquisition of Swiss-based PolyPeptide for $1.8 billion—the largest biopharmaceutical deal in South Korean history. Read about these and other topics in our roundup of key events as of the morning of July 20.

Oil prices rose on Monday amid the ongoing conflict between the U.S. and Iran and concerns over supplies through the Strait of Hormuz, according to CNBC. Brent crude surpassed $90 per barrel, while WTI rose to $84.5 following reports of new U.S. strikes on Iranian targets and the death of another U.S. service member.

According to the U.S. Central Command (CENTCOM), U.S. forces have been striking Iranian targets for the ninth consecutive night, including coastal surveillance systems, air defense systems, and missile and drone depots. David Roche, an analyst at Quantum Strategy, believes that a reduction in oil exports from Gulf countries will exacerbate the market shortage and could push the price of Brent crude to $95–105 per barrel.

TSMC is confident that strong demand for AI chips will continue for many years, and has therefore increased its investment in manufacturing capacity in Arizona to $265 billion, said the company’s chief financial officer, Wendell Huang. According to him, the company’s first U.S. plant is already producing high-quality chips with the same efficiency as TSMC’s flagship facility in Taiwan, Reuters reports.

At the same time, TSMC faces constraints in expanding its production in the U.S., including a shortage of construction workers and infrastructure. The company also continues to actively invest in Taiwan, where it plans to build 13 state-of-the-art manufacturing and packaging facilities in the coming years, ensuring that the island retains the most advanced technologies, the agency notes.

South Korea's Samsung Biologics has announced the acquisition of Switzerland's PolyPeptide Group for 1.46 billion Swiss francs ($1.8 billion), according to CNBC. Shareholders have been offered 44.31 francs per share, and the deal is expected to close by the end of the year. According to the company, this will be the largest biopharmaceutical deal in South Korean history.

The acquisition will enable Samsung Biologics to enter the rapidly growing market for peptide-based drugs, including popular treatments for obesity and diabetes, and to expand its manufacturing and research capabilities through PolyPeptide’s facilities in Sweden, Belgium, France, the United States, and India.

Netflix has disclosed the purchase price for InterPositive, the AI startup founded by Ben Affleck—the streaming service paid $587 million for the company, settling the deal entirely in cash, according to TechCrunch. The acquisition was announced in March, but the financial terms were not disclosed at that time.

InterPositive develops AI tools for video post-production that help resolve filming issues, such as filling in missing frames, replacing backgrounds, or adjusting lighting. Following the deal, the entire startup team joined Netflix, and Affleck himself became a senior advisor to the company. According to Netflix, generative AI has already been used in the creation of about 300 of the service’s projects.

— Japanese stocks are not trading due to holidays.

— Hong Kong's Hang Seng Index rose 2.1%, while mainland China's CSI 300 Index rose 2%.

— In South Korea, the KOSPI index fell 3.4%, and the KOSDAQ index fell 4.6%.

— Australia's S&P/ASX 200 rose 0.2%.

— S&P 500 futures rose 0.2%, Nasdaq Composite futures rose 0.6%, and Dow Jones Industrial Average futures were virtually unchanged.

This article was AI-translated and verified by a human editor