Technology / Semiconductor / Internet Research

Nicolas Baratte

Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing)

<ul>
<li>Tax credit increase from 25% to 35% (portion of investment deducted from taxable income), which becomes as impactful in $ as the direct subsidies or about $40bn. </li>
<li>The US is working hard to make Semi investments more attractive. Subsidies, loans and tax credits altogether now approach $150bn. </li>
<li>That could mitigate a little bit of TSMC price increase in Arizona. But it’s not massive. The impact of tax credits increase from 2% of revenue to 3%. </li>
</ul>


Tax credit increase from 25% to 35% (portion of investment deducted from taxable income), which becomes as impactful in $ as the direct subsidies or about $40bn. 
The US is working hard to make Semi investments more attractive. Subsidies, loans and tax credits altogether now approach $150bn. 
That could mitigate a little bit of TSMC price increase in Arizona. But it’s not massive. The impact of tax credits increase from 2% of revenue to 3%. 


US Congress’s Gift to Semiconductor Manufacturers: 35% Tax Credit on Investments

Taiwan Tech Focused Senior Analyst

Patrick Liao

TSMC (Taiwan Semiconductor Manufacturing) - ADR / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) - ADR

<ul>
<li>
<a href="https://www.smartkarma.com/entities/taiwan-semiconductor-sp-adr" target="_blank" data-smartkarma-citation="entities:8587:1" rel="noopener">Taiwan Semiconductor (TSMC) - ADR (TSM US)</a> is planning to scale back its presence in the gallium nitride (GaN) market to focus on high-growth areas.</li>
<li>To meet customer demand, <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-sp-adr" target="_blank" data-smartkarma-citation="entities:8587:1" rel="noopener">Taiwan Semiconductor (TSMC) - ADR (TSM US)</a> has recently been reallocating resources away from mature process nodes.</li>
<li>We estimate that <a href="https://www.smartkarma.com/entities/navitas-semiconductor-corp" target="_blank" data-smartkarma-citation="entities:36294:1" rel="noopener">Navitas Semiconductor Corp (NVTS US)</a> alone consumes over half of TSMC’s GaN capacity each month, making it TSMC’s largest GaN customer.</li>
</ul>



Taiwan Semiconductor (TSMC) - ADR (TSM US) is planning to scale back its presence in the gallium nitride (GaN) market to focus on high-growth areas.
To meet customer demand, Taiwan Semiconductor (TSMC) - ADR (TSM US) has recently been reallocating resources away from mature process nodes.
We estimate that Navitas Semiconductor Corp (NVTS US) alone consumes over half of TSMC’s GaN capacity each month, making it TSMC’s largest GaN customer.


TSMC (2330.TT; TSM.US): Halts GaN Production at Fab 5, Shifting to Advanced Packaging.

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

<ul>
<li>Samsung Said to Have Give Up Chasing TSMC at the Leading Edge of Chip Manufacturing</li>
<li>Xiaomi’s Tesla-Killer YU7 EV Surges in Orders -- TSMC Rides the Wave as Core Chip Supplier</li>
<li>TSMC (2330.TT; TSM.US): Will Rapidus Threaten TSMC's 2nm Market? We Think It's Too Early to Say (II)</li>
</ul>


Samsung Said to Have Give Up Chasing TSMC at the Leading Edge of Chip Manufacturing
Xiaomi’s Tesla-Killer YU7 EV Surges in Orders -- TSMC Rides the Wave as Core Chip Supplier
TSMC (2330.TT; TSM.US): Will Rapidus Threaten TSMC's 2nm Market? We Think It's Too Early to Say (II)


Taiwan Tech Weekly: Has Samsung Given Up Chasing TSMC?; Xiaomi Tesla-Killer EV Using Key TSMC Chips

<ul>
<li>TSMC: +23.4% Premium; Consider Shorting ADR Spread at Current Level; Record Short Interest in Local</li>
<li>UMC: +1.1% Premium; Wait for More Extreme Premium to Short</li>
<li>ASE: +2.9% Premium; Near Level to Go Long the ADR Spread</li>
</ul>


TSMC: +23.4% Premium; Consider Shorting ADR Spread at Current Level; Record Short Interest in Local
UMC: +1.1% Premium; Wait for More Extreme Premium to Short
ASE: +2.9% Premium; Near Level to Go Long the ADR Spread


Taiwan Dual-Listings Monitor: TSMC High Premium Persisting, Record Short Interest in Local

<ul>
<li>Japan’s <a href="https://www.smartkarma.com/entities/fujitsu-ltd" target="_blank" data-smartkarma-citation="entities:16968:1" rel="noopener">Fujitsu Ltd (6702 JP)</a> is currently developing a 2nm CPU named “MONAKA” (link). The CPU is planned to be manufactured by <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-sp-adr" target="_blank" data-smartkarma-citation="entities:8587:1" rel="noopener">Taiwan Semiconductor (TSMC) - ADR (TSM US)</a>.  </li>
<li>Rapidus has to deal with high technical barriers, tight timelines, heavy R&amp;D costs, market and profitability challenges.</li>
<li>Talent shortage in Japan: A lingering pain for the Semiconductor industry</li>
</ul>


Japan’s Fujitsu Ltd (6702 JP) is currently developing a 2nm CPU named “MONAKA” (link). The CPU is planned to be manufactured by Taiwan Semiconductor (TSMC) - ADR (TSM US).  
Rapidus has to deal with high technical barriers, tight timelines, heavy R&amp;D costs, market and profitability challenges.
Talent shortage in Japan: A lingering pain for the Semiconductor industry


TSMC (2330.TT; TSM.US): Will Rapidus Threaten TSMC's 2nm Market? We Think It's Too Early to Say (II)

Taiwan

Taiwan Semiconductor Manufacturing Company Ltd. manufactures integrated circuits based on its proprietary designs.  The Company offers a comprehensive set of integrated circuit fabrication processes to manufacture CMOS logic, mixed-mode, volatile and non-volatile memory and BiCMOS chips.  Taiwan Semiconductor is an affiliate of Philips Electronics N.V.

TSMC (Taiwan Semiconductor Manufacturing) - ADR (TSM US)

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TSMC (Taiwan Semiconductor Manufacturing) - ADR (TSM US)

US Congress’s Gift to Semiconductor Manufacturers: 35% Tax Credit on Investments

US increases tax credit for semiconductor investments from 25% to 35%, as impactful as direct subsidies at about $40bn, part of $150bn in total...

Nicolas Baratte

TSMC (2330.TT; TSM.US): Halts GaN Production at Fab 5, Shifting to Advanced Packaging.

TSMC is shifting focus away from the gallium nitride market to prioritize high-growth areas, reallocating resources to meet customer demand....

Patrick Liao

Taiwan Tech Weekly: Has Samsung Given Up Chasing TSMC?; Xiaomi Tesla-Killer EV Using Key TSMC Chips

Samsung has reportedly stopped trying to catch up to TSMC in chip manufacturing, while TSMC benefits from Xiaomi's surge in EV orders. The threat...

Vincent Fernando, CFA

Taiwan Dual-Listings Monitor: TSMC High Premium Persisting, Record Short Interest in Local

We analyze the premium and discount levels of dual-listed Taiwan companies, suggesting potential spread trading levels based on historical trends.

Vincent Fernando, CFA

TSMC (2330.TT; TSM.US): Will Rapidus Threaten TSMC's 2nm Market? We Think It's Too Early to Say (II)

Fujitsu developing 2nm CPU "MONAKA" with TSMC. Rapidus is facing technical barriers, talent shortage in Japan's Semiconductor industry.

Patrick Liao

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

US Congress’s Gift to Semiconductor Manufacturers: 35% Tax Credit on Investments

​US increases tax credit for semiconductor investments from 25% to 35%, as impactful as direct subsidies at about $40bn, part of $150bn in total...

Nicolas Baratte

TSMC (2330.TT; TSM.US): Halts GaN Production at Fab 5, Shifting to Advanced Packaging.

TSMC is shifting focus away from the gallium nitride market to prioritize high-growth areas, reallocating resources to meet customer demand....

Patrick Liao

Taiwan Tech Weekly: Has Samsung Given Up Chasing TSMC?; Xiaomi Tesla-Killer EV Using Key TSMC Chips

​Samsung has reportedly stopped trying to catch up to TSMC in chip manufacturing, while TSMC benefits from Xiaomi's surge in EV orders. The threat...

Vincent Fernando, CFA

Taiwan Dual-Listings Monitor: TSMC High Premium Persisting, Record Short Interest in Local

We analyze the premium and discount levels of dual-listed Taiwan companies, suggesting potential spread trading levels based on historical trends.

Vincent Fernando, CFA

TSMC (2330.TT; TSM.US): Will Rapidus Threaten TSMC's 2nm Market? We Think It's Too Early to Say (II)

​Fujitsu developing 2nm CPU "MONAKA" with TSMC. Rapidus is facing technical barriers, talent shortage in Japan's Semiconductor industry.

Patrick Liao

US increases tax credit for semiconductor investments from 25% to 35%, as impactful as direct subsidies at about $40bn, part of $150bn in total...

Samsung has reportedly stopped trying to catch up to TSMC in chip manufacturing, while TSMC benefits from Xiaomi's surge in EV orders. The threat...

Fujitsu developing 2nm CPU "MONAKA" with TSMC. Rapidus is facing technical barriers, talent shortage in Japan's Semiconductor industry.