TSMC(US:TSM) Shenwan Hongyuan Securities·2025-09-20 13:49Investment Rating - The report maintains a positive outlook on the electronic sector in Taiwan, particularly highlighting the growth driven by AI and DRAM markets [1]. Core Insights - The semiconductor industry, particularly TSMC, reported a record revenue of NT$3,357.7 billion in August 2025, marking a 34% year-on-year increase, driven by strong demand for AI applications [6][8]. - The AI server demand is robust, with companies like Wistron and Inventec showing significant revenue growth, indicating a strong market for EMS providers [14]. - The DRAM market is strengthening, with Nanya Technology reporting a 141% year-on-year revenue increase in August 2025, attributed to a shift in production focus towards DDR4 memory [16]. Summary by Sections AI Sector - TSMC's revenue growth is attributed to increased demand for advanced chips driven by AI applications, with expectations of a 30% growth in USD revenue for 2025 [6]. - The revenue of Kyoden Electronics increased by 32% year-on-year, supported by AI and advanced process testing [9]. Semiconductor Manufacturing - UMC and Powerchip reported slight revenue changes, with UMC's revenue down 7% year-on-year, while Powerchip saw a 1% increase [16]. - The high-performance computing sector continues to show growth potential despite fluctuations in consumer electronics [16]. Storage Market - Nanya Technology's revenue surged by 141% year-on-year, driven by increased demand for DDR4 memory as major manufacturers shift focus [16]. Passive Components - Yageo's revenue grew by 4% year-on-year, reflecting a stable demand in niche markets, particularly in China [17]. PCB and CCL - Unimicron and Kinsus reported revenue growth of 5% and 20% respectively, with Kinsus benefiting from rising demand for BT substrates [12]. - Taiwan Surface Mounting Technology (TSMT) reported a 53% year-on-year increase in revenue, indicating strong growth in the CCL sector [12]. EMS Sector - Foxconn's revenue reached NT$6,065.1 billion, with an 11% year-on-year increase, while Wistron and Wiwynn reported significant growth rates of 92% and 198% respectively [14].