BofA Reiterates Buy on TSMC, 25% CAGR

BofA reaffirmed Buy rating on TSMC, maintaining a 2,560 TWD price target, citing overblown competitive concerns.
TSMC aims for 25% compound annual capacity growth for 3nm/5nm nodes, reaching 190k wafers/month by Q4‑2026, 230k by 2027.
For the upcoming N2 node, BofA projects 70% CAGR 2026‑2028, five new fabs, 20% faster tech transfer, and early defect‑density achievement.
Advanced packaging capacities (CoWoS 80% CAGR, SoIC 90% CAGR) and yields (>98% CoWoS) outpace Intel’s EMIB‑T pilot yields of 80‑85%.