Overview
- TSMC outlined its next node steps at its North America tech event, introducing A13 as a direct shrink of A14 with about 6% more area density, lower power use, full A14 design-rule reuse, and production planned in 2029.
- The company said 2-nanometer capacity will grow at a 70% yearly pace from 2026 to 2028 with five fabs moving into volume, and first-year 2nm output will top the initial 3nm run by about 45%.
- TSMC projected about 25% annual growth for 3nm and rapid gains in advanced packaging, with CoWoS growing more than 80% a year and SoIC more than 90%, technologies that link or stack chips to speed data flow for AI processors.
- Global output is set to rise, with the Arizona fab expected to lift production by 80% in 2026 and the Japan facility by 130%, expanding supply for high-performance chips.
- Brokers grew more upbeat on the stock, with Barclays lifting its target to $470 after strong Q1 results and higher guidance, even as analysts warn that rich valuation and TSMC’s heavy index weight could magnify risks under Taiwan’s looser single-stock cap.