Core Viewpoint - Taiwan Semiconductor Manufacturing Co. is enhancing its leadership in advanced chipmaking with the launch of its 2-nanometer process, while Wall Street becomes increasingly optimistic about the company's AI-driven earnings potential [1]. Group 1: 2nm Production and Customer Demand - Taiwan Semiconductor has commenced production of its 2nm "N2" process, utilizing nanosheet transistors, also known as gate-all-around (GAA) technology [2]. - Major chip designers such as Nvidia, Apple, AMD, and Qualcomm, along with hyperscalers like Microsoft, Amazon, and Google, are expected to drive early demand for the 2nm process [3]. Group 2: Competitive Landscape - Analysts indicate that Taiwan Semiconductor's consistent execution and timely delivery of capacity are setting it apart from competitors like Samsung and Intel, with the gap between them widening [5]. - While Intel's 18A process may attract additional foundry customers, Taiwan Semiconductor is expected to maintain its edge through incremental upgrades across future nodes [6]. Group 3: Geopolitical Factors - Geopolitical issues and supply assurance may create selective opportunities for competitors seeking non-Taiwan production, but Taiwan Semiconductor is likely to remain dominant overall [7]. Group 4: Market Sentiment and Financial Outlook - Following a strong start to 2026, several brokerages have raised their price targets for Taiwan Semiconductor, with JP Morgan increasing its forecast by 24% to 2,100 New Taiwanese dollars due to demand for advanced manufacturing [8]. - Analysts anticipate that Taiwan Semiconductor will report an 18% year-over-year sales growth and an operating margin exceeding 50% for the December quarter, marking a three-year high [9].