Globalfoundries IncGFS
▲ PositiveDemandTechnologyrelevance
Strong AI and data center optical networking demand drove 62% YoY growth in its communications infrastructure business.
Impact on assets 3
Semiconductors
Globalfoundries IncArtificial Intelligence
Coherent IncCOHR
Mentioned
Information Technology
Tower Semiconductor LtdTSEM
Mentioned
Theme Impact 4
Off-coverage companies 1
SMART Photonics Holding B.V.Private▲ Positive
Technologyrelevance
SMART Photonics partners with GlobalFoundries to offer open-access silicon and indium phosphide photonics manufacturing.
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Taiwan▼
TSMC Weighs Overseas Factory Margin Dilution Against Rich Valuation
Taiwan Semiconductor Manufacturing Company is expanding overseas production while trying to protect the earnings that underpin its valuation, raising the question of how much lower-margin capacity it can absorb. TSMC reported a 67.7% gross margin and a 60.3% operating margin in the second quarter, yet at the September 30 market-data snapshot the stock traded at roughly 29 times trailing earnings and 57 times trailing free cash flow. Management described overseas-factory dilution starting at about two to three percentage points of gross margin and moving toward three to four points in later years, and separately expected the N2 ramp to dilute gross margin by three to four points in the second half of 2026. On second-quarter revenue of NT$1.27 trillion, a three-point gross-margin reduction represents approximately NT$38.1 billion of gross profit and four points represent NT$50.8 billion, equal to about 5.4% and 7.2% of reported net income of NT$706.6 billion, respectively. Insider Monkey's hedge fund database showed 249 TSMC holders in Q2 2026, up from 234 in Q1, with Fisher Asset Management raising its position 2% to 18,866,198 and Coatue cutting its position 4% to 8,914,995.
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Semiconductors › Foundry & Contract Fabrication ▼Supply
Artificial Intelligence › Foundry & Advanced Packaging ▼Supply
2330.TW · Capital · Negative Overseas-factory and N2 ramp margin dilution of 3-4 gross-margin points threatens TSMC's earnings that underpin its rich ~29x trailing P/E valuation.
United StatesTaiwan▲7impact 4
TSMC Weighs Additional Chip Plants in Texas With Tens of Billions in Spending
TSMC is considering building a new chip manufacturing plant in Texas, with expectations of adding several tens of billions of dollars in investment under a multi-year plan to expand its chipmaking business in the United States. Sources say the Texas project covers the construction of multiple chip plants, and if the investment goes ahead, each plant would cost at least 20 billion dollars. Previously, TSMC pledged to invest 265 billion dollars in Arizona, where several plants are currently under construction. The Texas investment depends on whether the U.S. government extends a tax credit measure for advanced manufacturing that is set to expire at the end of this year. The plan is still at an early stage and no details have been officially disclosed. TSMC is a key chip supplier to Nvidia and Apple, with revenue from wafer manufacturing in America accounting for more than 75% of its revenue from that business this year.
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Semiconductors › Foundry & Contract Fabrication ▲Capital
Artificial Intelligence › Foundry & Advanced Packaging ▲Capital
Semiconductors › Logic, Compute & Connectivity Processors Capital
Artificial Intelligence › AI Compute & Accelerator Silicon ▲Capital
2330.TW · Capital · Positive TSMC is weighing tens of billions in additional Texas chip plant investment, expanding its US manufacturing footprint.
2330.TW · Regulation · Neutral The Texas investment depends on the US government extending an advanced-manufacturing tax credit set to expire this year.
United StatesTaiwan▲2
Wells Fargo Sees Semiconductor Equipment Suppliers as Winners in TSMC 2nm Expansion
Wells Fargo says semiconductor capital-equipment companies could be the biggest near-term beneficiaries of a potential TSMC expansion of 2-nanometer production. Analyst Joe Quatrochi wrote that reports of the possible capacity increase should be viewed as a potentially incremental positive opportunity for semi cap companies, though timing, size and node details are still unconfirmed. Building additional 2nm capacity would require significant spending on lithography, deposition, etching and inspection equipment, adding a layer of demand for suppliers supporting TSMC's fabs. Quatrochi pointed to the so-called Silicon Prairie as a logical location for a potential second U.S. campus, citing existing semiconductor operations in Texas from Texas Instruments, Samsung, Coherent and Terafab, plus TSMC's design service center in Austin. TSMC's major 2nm customers include Apple, Nvidia, AMD and Qualcomm, with Google, Broadcom, Marvell, Amazon and OpenAI also expected to use the advanced process.
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Semiconductors › Wafer-Fab Equipment & Lithography ▲Demand
Artificial Intelligence › Foundry & Advanced Packaging ▲Demand
Semiconductors › Foundry & Contract Fabrication ▲Demand
Semiconductors › Lithography Systems ▲Demand
2330.TW · Demand · Positive Reports of a potential TSMC 2nm capacity expansion would add equipment demand supporting TSMC's fabs, with TSMC as the central subject.