Taiwan Semiconductor Manufacturing Co. (TSMC) is moving forward with an advanced wafer fabrication plant at Hsinchu Science Park’s Longtan campus. The company previously paused this project in 2023 due to local opposition. This expansion aims to scale production to meet surging demand for AI-related hardware.
Bernstein named TSMC a primary winner of the current AI capital expenditure cycle. The firm forecasts TSMC’s earnings will grow by approximately 40%. Analysts expect this growth to materialize by 2026. Strong AI demand currently offsets ongoing weakness in the consumer electronics sector.
TSMC shares in Taiwan climbed 6.6% in a single session. This rally represents the stock's largest daily gain in over a year. The price movement significantly boosted the broader Taiex index.