TSMC's Advanced Process Price Hikes Exceed Expectations, Stock Hits New High

Morgan Stanley reports that TSMC is hinting to the supply chain that its advanced process wafer foundry capacity will be constrained in 2025, meaning customers who do not accept higher prices may not secure the needed capacity.

JPMorgan predicts TSMC's Q2 revenue will reach $20.5 billion with a gross margin of 53%, and TSMC might raise its full-year revenue guidance but not its capex guidance, with gross margins potentially rising to 58% by 2025. Bernstein believes that with the rapid iteration of AI chips, Nvidia’s lead over other manufacturers will widen, and TSMC’s advanced packaging advantage will continue, with the ASIC chip market expected to expand.