Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) is accelerating investments in advanced chips, packaging, and AI infrastructure as company executives position the foundry giant to capture long-term growth from the expanding artificial intelligence market.

TSMC Sees AI Driving Semiconductor Growth

At Taiwan Semiconductor's annual technology symposium, Deputy Co-Chief Operating Officer Kevin Zhang said AI is rapidly transforming the semiconductor industry and could push global semiconductor revenue to $1.5 trillion by 2030 after surpassing $1 trillion this year.

Zhang said AI and high-performance computing applications could account for about 55% of global semiconductor revenue by 2030, overtaking smartphones and mobile devices as the industry's main growth engine.

He also said AI inference workloads are expected to surpass AI training demand over time, creating another major driver for semiconductor consumption, the Taipei Times reported on Friday.

According to Zhang, Taiwan Semiconductor helped customers generate more than $350 billion in semiconductor revenue last year, and that figure could exceed $1 trillion within four years.

TSMC Expands Advanced Manufacturing Capacity

To meet rising demand for AI, Taiwan Semiconductor is aggressively scaling up advanced chip production and packaging capacity.

Vice President B.Z. Tien said the company is ramping 2-nanometer chip production across five factories in Hsinchu and Kaohsiung this year. Tien projected the annual compound growth rate for 2-nanometer capacity could reach 70% in 2027 and 2028.

Taiwan Semiconductor is also expanding Chip-on-Wafer-on-Substrate (CoWoS) advanced packaging capacity at a 90% annual compound growth rate from 2022 through next year to support AI chip demand.

TSMC Advances AI Packaging And Connectivity

Vice President Lipen Yuan said Taiwan Semiconductor's third-generation CoWoS technology entered volume production this year, supporting 12 high-bandwidth memory chips through a larger interposer design.

Yuan added that Taiwan Semiconductor improved CoWoS yield rates to 98% and plans to support 24 HBM chips by 2029 while developing system-on-wafer packaging capable of accommodating 64 HBM chips.

Taiwan Semiconductor also plans to launch its Compact Universal Photonic Engine (COUPE) photonics technology this year to improve chip connectivity and energy efficiency in AI data centers.

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the July 16, 2026 (estimated) earnings report.

  • EPS Estimate: $3.66 (Up from $2.47 YoY)
  • Revenue Estimate: $39.76 Billion (Up from $30.07 Billion YoY)
  • Valuation: P/E of 35.8x (Indicates premium valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $420.00. Recent analyst moves include:

  • Barclays: Overweight (Raises Forecast to $470.00) (April 22)
  • DA Davidson: Buy (Maintains Forecast to $450.00) (April 17)
  • Needham: Buy (Raises Forecast to $480.00) (April 16)

TSM Price Action: Taiwan Semiconductor shares were down 2.04% at $409.20 during premarket trading on Friday. The stock is approaching its 52-week high of $421.97, according to Benzinga Pro data.

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