Posted 3/28/2024, 6:32:36 PM
TSMC Poised for Growth Despite Risks as World's Largest Semiconductor Foundry
- TSMC is the world's largest semiconductor foundry with ~60% market share and strong position to benefit from AI chip demand
- High-Performance Computing products are 43% of revenue, saw 17% YoY growth in Q4, and strong long-term growth potential
- Projected 20% revenue growth in 2024 driven by favorable supply-demand dynamics in AI chips
- Valuation remains reasonable despite growth potential with forward P/E of 17.5X compared to over 30X for peers
- Risks include emerging competition from Intel, China in foundry market that could erode market share over time