Last updated on March 24, 2021
TSMC is an effective monopoly!
TSMC Reported last week perfect execution by their phenomenal CEO
There are only two companies in the world able to make high-performance semiconductor at volume. TSMC and Samsung Microelectronics.
So, if you are a volume or upcoming semi company you really only have these places to go. Even if you are Intel, who we know fell from the top of the tree over the last few years, you probably have to go to TSMC at some time in the future.
AMD, Apple, Nvidia – all these top names depend on TSM to stay at the leading edge of their businesses.
TSMC has a moat like the Grand Canyon and walls to scale like the North Face of Everest.
Business is solid too, Top line up by 1,294/1,069 ( the results are published in TWD which adds too many zero’s to make it readable – but you get the ratio!). Income up 499/353
And you can buy this all at a PR of 59 – Seems good to us.
WE OWN TSM LONG TERM AS A CORE
We expect the silicon content of a 5G smartphone to continue to increase as compared to a 4G smartphone. We continue to expect faster penetration of 5G smartphone as compared to 4G over the next several years as 5G smartphone benefit from the significant performance and with a latency improvement of 5G network to drive more AI applications and more cloud services. We believe 5G is a multi-year megatrend that will enable a world where digital computation is increasingly ubiquitous, which will fuel the growth of all four of our growth platforms in the next several years.
As we enter the 5G era, a smarter and more intelligent world will require massive increases in computation power and greater need for energy-efficient computing, and therefore, require leading-edge technologies. Thus, HPC is an increasingly important driver of TSMC’s long-term growth and the largest contributor in terms of our incremental revenue growth. With our technology leadership, we are well positioned to capture the growth from the favorable industry megatrend. We now expect our long-term revenue growth to be 10% to 15% CAGR from 2020 to 2025 in US dollar terms.
Now, I will talk about the N3 status. N3 will be another full node stride from our N5 with up to 70% logic density gain, up to 15% performance gain and up to 30% power reduction as compared with 5-nanometer. Our N3 technology will use FinFET transistor structure to deliver the best technology maturity, performance and cost for our customers. Our N3 technology development is on track with good progress. We are seeing a much higher level of customer engagement for both HPC and smartphone application at N3 as compared with N5 and N7 at a similar stage. Risk production is scheduled in 2021 and volume production is targeted in second half of 2022. Our 3-nanometer technology will be the most advanced foundry technology in both PPA and transistor technology when it is introduced. Thus, we are confident our 3-nanometer will be another large and long-lasting node for TSMC.
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