Overview
- New reports say TSMC’s advanced CoWoS packaging lines are fully booked by customers including Nvidia, Google, Amazon and MediaTek, with outsourcing of parts of the workflow planned in 2026 to ease bottlenecks.
- Consensus on Wall Street remains positive with a Buy rating and 12‑month targets clustered around $355 to $390, citing leadership in advanced nodes and high‑end packaging.
- Management has signaled a transitory deceleration in calendar‑year 2026 capital spending as AI demand digests, though longer‑term growth drivers remain intact.
- Recent financials underscored strength, with FQ3 2025 revenue up 37%, EPS up 51%, gross margin at 59.5% and operating margin at 50.6%, supported by a low‑leverage balance sheet and more than $90 billion in cash.
- Legal and competitive risks have surfaced, including a lawsuit alleging a former senior vice president misused trade secrets after joining Intel—claims Intel denies—and at least one analyst downgrade flagging Intel’s renewed push in advanced nodes.