TSMC Poised to Advance AI Chip Performance with Cutting-Edge 2nm Technology
• TSMC is poised to bring the next advancement in chip technology (2nm process) to market, which will increase AI chip performance and reduce power consumption.
• TSMC holds advantages over competitors like Samsung and Intel due to its scale and singular focus on chip manufacturing.
• The 2nm process will start volume production in 2H 2025. Getting yields and pricing right will take time.
• Despite its key role, TSMC trades at a reasonable <17x 2024 earnings, below historical multiples and the broader market.
• Demand for powerful and energy-efficient AI chips is surging. As a key enabler, TSMC should see its multiple expand.