Benzinga·2025-12-08 08:10Core Insights - Taiwan Semiconductor Manufacturing Co. (TSMC) is experiencing overwhelming demand for its advanced packaging technologies, particularly Chip on Wafer on Substrate (CoWoS), driven by major companies like Nvidia, Google, Amazon, and MediaTek seeking capacity for next-generation AI chips [1][2]. Group 1: Demand and Capacity - TSMC's CoWoS lines are fully booked, with no spare capacity available despite aggressive expansion efforts, indicating a severe short supply [2]. - The company is investing heavily to close the capacity gap, as stated by TSMC's chairman during an earnings call [2]. Group 2: Outsourcing and Partnerships - Due to demand outpacing internal expansion, TSMC plans to outsource parts of its packaging workflow starting in 2026, accelerating collaborations with equipment and packaging partners to ensure timely delivery of advanced components [3][4]. - Suppliers are experiencing surging orders as TSMC shifts from a fully in-house model to a hybrid approach [4]. Group 3: Revenue Growth - TSMC reported a consolidated net revenue of approximately NT$367.47 billion for October 2025, marking a 16.9% increase year-over-year and an 11.0% increase from the previous quarter [7]. - From January to October, TSMC's revenue totaled NT$3.13 trillion, up 33.8% compared to the same period last year [7]. Group 4: Market Position and Performance - TSMC remains a key manufacturing partner for Nvidia's Blackwell AI platform, which continues to see strong global demand despite changes in U.S. export rules [8]. - The company's stock has surged 47.07% year-to-date, with strong rankings in Quality and Growth and Momentum relative to competitors [8].