The latest report on foreign investment in the United States calls for multiple TSMC (2330-TW)(TSM-US), optimistic about the continued growth of long-term semiconductor demand, the increase in the content of semiconductors in terminal products, and the increase in foundry prices next year, reiterated the buy rating, and the target price was raised from 860 yuan to 912 yuan.
American foreign investors pointed out that applications such as 5G, AI, electric vehicles and high-efficiency computing will continue to boost the growth of semiconductor demand, driven by advanced processes below 28 nanometers, with a compound annual growth rate of 23% and a mature process of about 10%.
American foreign investors said that driven by factors such as the expansion of semiconductor demand and the increase in the content of semiconductors in terminal products, it is estimated that the compound growth rate of global fab revenue will reach 16% in 2021-2025.
From the long-term outlook released by TSMC, the target is a compound annual revenue growth rate of about 15-20%. American foreign investors believe that TSMC’s long-term target is better than the original estimate of 10-15%, and they are optimistic about the output value of the semiconductor industry in the next five years. Will grow 7-9%.
Although under the protection of advanced manufacturing processes, TSMC’s status as a leading wafer foundry industry is still difficult to shake, and long-term demand continues to be optimistic. However, due to the impact of environmental factors, it has faced pressure to withdraw foreign capital since the beginning of this year, and its stock price has also increased from January 1. The historical high price of 688 yuan has bottomed out. Last week, the back-tested 500 yuan integer level was tested. However, in the past 2 days, the stock price has rebounded from the low point due to the continuous replenishment of foreign capital.