Taiwan Semi's Cutting-Edge 3nm Chips in High Demand, Apple, Intel, and AMD Boost Orders
Portfolio Pulse from Anusuya Lahiri
Taiwan Semiconductor Manufacturing Co (TSMC) is experiencing a surge in orders for its 3nm chips from major clients including Apple, Intel, and AMD. The demand for these chips is expected to push TSMC's revenue share from 3nm chips to over 20% this year. The chips are crucial for upcoming products like the iPhone 16 and new Mac processors, Intel's Lunar Lake CPUs, and AMD's Zen 5 architecture platform. Despite challenges in expanding its U.S. operations due to construction delays, TSMC plans to build factories for 2nm chips in Taiwan and is considering a second facility in Japan. TSMC's stock has risen over 53% in the last 12 months, and investors can gain exposure through the VanEck Semiconductor ETF (SMH) and iShares Semiconductor ETF (SOXX).
March 27, 2024 | 2:20 pm
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POSITIVE IMPACT
Apple's demand for TSMC's 3nm chips for its upcoming iPhone 16 and new Mac processors indicates a strong partnership and potential for future growth.
Apple's reliance on TSMC's 3nm chips for its next-generation products highlights the strategic importance of this partnership for both companies, potentially driving Apple's product performance and market competitiveness.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 80
POSITIVE IMPACT
AMD's gearing up to launch its Zen 5 architecture platform using TSMC's 3nm process, highlighting the importance of TSMC's technology in AMD's AI application strategy.
AMD's plan to use TSMC's 3nm process for its Zen 5 architecture platform aimed at AI applications signifies the strategic value of TSMC's advanced chip technology in driving AMD's future growth and innovation.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75
POSITIVE IMPACT
Intel's plans to use TSMC's 3nm process for its Lunar Lake CPUs and other components signal a significant step in its product development strategy.
Intel's decision to utilize TSMC's 3nm process for key components of its Lunar Lake series underscores the critical role of TSMC's technology in Intel's innovation and product roadmap.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75
POSITIVE IMPACT
Investors can gain exposure to TSMC's stock performance through the VanEck Semiconductor ETF, which includes TSMC as part of its holdings.
The VanEck Semiconductor ETF, which holds TSMC stock, offers investors an opportunity to benefit from the semiconductor industry's growth, including the increased demand for TSMC's 3nm chips.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
The iShares Semiconductor ETF provides another avenue for investors to participate in TSMC's success, as it includes TSMC in its portfolio.
By including TSMC in its portfolio, the iShares Semiconductor ETF allows investors to indirectly invest in TSMC's growth and the broader semiconductor market's potential.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
TSMC sees a surge in 3nm chip orders from Apple, Intel, and AMD, significantly impacting its revenue and stock performance.
The increased demand for TSMC's 3nm chips from leading technology companies directly contributes to its revenue growth and stock performance. The expansion of its production capacity and the strategic planning for new factories despite challenges underscore the company's growth trajectory.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100