Summary of TSMC (2330.TW) Conference Call Company Overview - **Company**: Taiwan Semiconductor Manufacturing Company (TSMC) - **Ticker**: 2330.TW - **Market Cap**: NT$33.7 trillion / $1.1 trillion - **Enterprise Value**: NT$32.0 trillion / $1.0 trillion - **12-Month Price Target**: NT$1,600 (up from NT$1,370) [40][41] Key Industry Insights - **AI Demand**: AI is expected to be a significant growth driver for TSMC, with Nvidia projecting the AI infrastructure market to reach $3-4 trillion by 2030, implying a 42.3% CAGR from $600 billion in 2025 [2][23]. - **Revenue Growth**: TSMC's total revenue is projected to grow at a CAGR of at least 17.2% from 2026 to 2030, even with muted non-AI growth [2][24]. Financial Performance and Forecasts - **Earnings Revisions**: TSMC's earnings forecast for 2025-2027 has been raised by 2-9%, reflecting higher N2 capacity and favorable foreign exchange rates [1][36]. - **Revenue Projections**: - 2025E: NT$3,695.5 billion - 2026E: NT$4,307.5 billion - 2027E: NT$5,187.1 billion [4][16]. - **Gross Margin**: Expected to improve to 58.5% in 2025, 58.2% in 2026, and remain at 58.2% in 2027 [22][36]. Capacity and Demand Insights - **N2 Capacity**: Revised up to 1,230k wafers in 2027, driven by demand from AI and HPC customers [1][20]. - **Capex**: Increased to $44 billion for 2026, reflecting higher N2 capacity [21][36]. Valuation Metrics - **P/E Ratio**: Projected to be 19.6 in 2025, decreasing to 15.3 by 2027 [10]. - **EPS Growth**: Expected to grow from NT$45.25 in 2024 to NT$84.84 in 2027 [4][16]. - **Dividend Yield**: Projected to increase from 1.9% in 2025 to 2.2% in 2027 [4]. Strategic Outlook - **Long-term Growth**: TSMC is positioned to capture long-term structural growth opportunities in sectors such as 5G, AI, HPC, and EV [41]. - **Market Position**: TSMC's technology leadership and execution capabilities are expected to enhance its competitive position against peers [41]. Conclusion - **Investment Recommendation**: The company maintains a Buy rating with a target price of NT$1,600, reflecting a 22.6% upside potential [40][41].

Key Takeaways Taiwan Semiconductor Manufacturing Company (TSM) is advancing its nanosheet chip technology roadmap with N2, N2P, A16, and A14 with the aim of improving performance and efficiency at advanced nodes. The N2 logic node is Taiwan Semiconductor's first generation of nanosheet transistor technology, offering 10- 15% speed improvement at the same power, or 25-30% power reduction at the same speed, plus more than 15% chip density gain over N3E. Volume production is on track for the second half of 202 ...