Core Insights - TSMC is capitalizing on AI opportunities as smartphone market inventory stabilizes, with strong demand for its 3nm process chips driven by both Apple and non-Apple brands [2][3] - Apple has reported better-than-expected sales for the iPhone 17 series, leading to increased orders for TSMC's latest 3nm chips [2] - TSMC's advanced manufacturing processes are expected to dominate the smartphone SoC market, with a projected market share of 87% for 5nm and below by 2025, increasing to 89% by 2028 [3] Group 1 - TSMC's chairman expressed confidence in the smartphone inventory levels, stating they have returned to a healthy seasonal state, alleviating concerns about prebuilt inventory [2] - The iPhone 17 series features the new A19 and A19 Pro chips, both utilizing TSMC's latest 3nm process, contributing to strong order momentum [2][3] - MediaTek's latest flagship chip, the Dimensity 9500, and Qualcomm's Snapdragon 8 Elite Gen 5 are also leveraging TSMC's 3nm process, further boosting TSMC's output [3] Group 2 - TSMC anticipates strong AI-related demand through 2025, while non-AI terminal markets are showing signs of recovery [4] - The recovery in high-end smartphone sales is expected to drive further demand for TSMC's 3nm chips, with a potential increase in utilization rates for previously weaker 6/7nm capacities [4] - The automotive semiconductor demand remains weak, pending inventory adjustments from suppliers [4]

Group 1 - TSMC is capitalizing on the AI market opportunities, with a strong demand for its advanced 3nm process as smartphone market inventories recover [1][3] - The iPhone 17 series has shown better-than-expected sales, leading Apple to increase orders, which boosts TSMC's 3nm family order momentum [1][2] - Research firm Counterpoint Research predicts TSMC's market share in smartphone SoCs at 87% by 2025 for 5nm and below processes, increasing to 89% by 2028 [2] Group 2 - TSMC anticipates strong AI-related demand through 2025, while non-AI terminal markets are showing signs of recovery [3] - The recovery in high-end smartphone sales is expected to drive TSMC's order momentum, with a potential increase in utilization rates for previously weak 6/7nm capacities [3] - Demand for automotive semiconductors remains weak, pending inventory adjustments from suppliers [3]