Key takeaways from TSMC's WIP status:
3nm: The most advanced node, is currently at full capacity (over 100%).
5/4nm: Capacity has decreased from 92% in 2022 to 80% in 2023, but is expected to rebound to 94% in 2025.
7/6nm: Capacity has decreased from 85% in 2022 to 61% in 2023, but is expected to rebound to 75% in 2025.
16/12nm: Capacity has decreased from 86% in 2022 to 65% in 2023, but is expected to rebound to 76% in 2025.
28/22nm: Capacity has decreased from 98% in 2022 to 81% in 2023, but is expected to rebound to 82% in 2025.
Possible reasons for the almoat full in capacity utilization:
Demand fluctuations: The demand for different types of chips may fluctuate over time, leading to changes in capacity utilization.
Inventory adjustments: TSMC may be adjusting its inventory levels in response to changes in demand.
New product launches: The introduction of new products may require additional capacity, leading to a temporary decline in capacity utilization for other nodes.
Overall, the WIP situation for TSMC is stable, with the company expecting to maintain a high level of capacity utilization in the coming years.
Impact of AI on TSMC's capacity
The rise of AI is having a significant impact on TSMC's capacity. AI chipmakers are demanding more and more advanced chips, which are driving up demand for TSMC's 3nm and 5nm nodes. As a result, TSMC is investing heavily in these nodes, which is putting pressure on its capacity for other nodes.
TSMC's plans to expand its production capacity
TSMC is investing heavily in new plants and technologies to meet the growing demand for AI chips. The company is also expanding its operations globally, with a focus on the US and Europe.
In conclusion, TSMC's WIP status is a mixed bag, with the company facing challenges in some areas but also experiencing strong growth in others. The rise of AI is driving demand for TSMC's most advanced chips, which is putting pressure on its capacity. However, the company is investing heavily in new plants and technologies to meet this demand.
I will continue to DCA TSM even if the market goes down. One must have confidence in a good and potential company like TSM, especially in the growing AI chips market
Do your own due diligence check before invest.
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Numbers should be good enough for a jolt back near the earlier highs. (23.6% m over m, 44.7% y over y, 30.5% year to date vs. last year) Let's get back on track for 200!
july sale number too good, beat expectation, typical reaction to TSM sale number, open high then sell off. the hedge fund managers manipulating.
45% increase in July revenue year over year. This thing is undervalued big time.
good sign, will be back to 180 if nvdia blows out earning.
highest monthly revenue of all time