Shares of Taiwan Semiconductor Manufacturing (NYSE: TSM) were up 2.4% as of 11:17 a.m. ET on Tuesday. The bump stands out on a flat day for the broader market, as the leading chip foundry announced plans to invest $2.9 billion in a new chip-packaging facility in Taiwan. 

It's been a rough year for the chip industry. The company reported a sequential decline in revenue in the second quarter, reflecting weak end-market demand for processors.  

But the planned investment in new facilities fits management's view about the long-term opportunity to grow revenue. There are powerful secular trends driving demand for advanced chip technologies, including 5G wireless adoption and artificial intelligence applications.

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Source Fool.com