Bernstein Remains Bullish On Taiwan Semiconductor Manufacturing Company Limited (TSM)

Group 1: Company Overview - Taiwan Semiconductor Manufacturing Company Limited (TSM) is the world's largest dedicated contract chip producer, holding a mid-60% market share in 2024 [6] - The company utilizes its own integrated circuit designs to manufacture chips for clients, benefiting from the global shift of semiconductor companies from integrated device manufacturers to fabless designers [6] Group 2: Financial Projections - Bernstein has increased its price target for TSM from $290 to $330, maintaining an Outperform rating [2] - The firm projects TSM's chip-on-wafer-on-substrate capacity to reach 125,000 wafers per month by the end of 2026, aligning with Nvidia's requirements for upcoming projects [2] - Sales for TSM are anticipated to grow by 20% in 2027 and 23% in fiscal 2026 [2] Group 3: Legal Issues - TSM has filed a lawsuit against Wei-Jen Lo, a former senior vice president who joined Intel, citing potential misuse of trade secrets and breach of a non-compete agreement [3] - The Taiwan economy ministry is monitoring the situation and will assist in determining if there are violations of the National Security Act or infringement of core technologies [4] - Lo has a significant background in chip production, having contributed to the mass production of 5-nm, 3-nm, and 2-nm chips during his 21 years at TSM [5]