TSMC(US:TSM) Zhi Tong Cai Jing·2025-12-18 17:16Core Viewpoint - TSMC is set to begin mass production of its 2nm technology by the end of this year, with current capacity fully booked and plans for additional investment to meet demand [1] Group 1: Company Developments - TSMC's 2nm production capacity has been fully reserved, necessitating the construction of new facilities, with an estimated investment of $28.6 billion [1] - Major clients for TSMC's 2nm process include Apple, Qualcomm, MediaTek, and AMD, with Apple securing over half of the initial capacity [1] - TSMC plans to increase its monthly production to 100,000 wafers by the end of 2026 [1] Group 2: Market Analysis - Morgan Stanley has raised TSMC's target stock price from NT$1,688 to NT$1,888, citing growth potential in revenue and profit margins [1] - The firm anticipates TSMC will indicate a revenue growth in the mid-20% range for 2026, ultimately achieving a year-on-year growth of 30% [1] - It is expected that TSMC's gross margin will exceed 60% in Q4 2025 and maintain above 60% for the entire year of 2026 [1]