Taiwan Semiconductor Manufacturing Company (TSMC) reports fully booked capacity for its advanced CoWoS packaging technology. The company is reportedly redirecting some orders to Intel’s Malaysian facility to serve mutual key customers. This shift highlights a critical capacity bottleneck for AI accelerators within the global supply chain.
TSMC shares closed down 1.26% at NT$2,350 during a broader market sell-off. Brokerage firm CLSA raised its price target for the company to NT$3,700. CLSA also increased its 2026-2028 earnings forecasts by 8% to 15%.
The firm cited TSMC’s strong pricing power and rising demand from Apple and AI infrastructure. These factors justify expanded capital expenditure to meet future production requirements.