Citigroup: TSMC's Advanced Process Chip Supply May Remain Tight
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By:格隆汇
Glonghui, January 16|Citi analysts pointed out in a research report that the supply of TSMC’s advanced process chips may remain tight for some time. Management reiterated during the earnings call that they are making every effort to narrow the supply-demand gap. Despite rising costs for more advanced process nodes, Citi believes that AI demand is positive for both TSMC’s revenue and profit margins, strengthening its foundation to maintain industry-leading profitability throughout the cycle. Regarding the advanced packaging business, analysts expect TSMC’s capacity to reach 1.2 million to 1.3 million wafers by 2026, increasing to 1.8 million to 2 million wafers by 2027. Citi maintains its “Buy” rating on TSMC and raised its target price from NT$2,450 to NT$2,600.
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