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Investing.com - Bernstein has reiterated an Outperform rating on Taiwan Semiconductor Manufacturing Company (NYSE:TSM) with a price target of $249.00, according to a research note released Friday.
The firm’s analysis highlights TSMC’s significant position in the semiconductor equipment market, representing approximately 15-25% of the global wafer fab equipment (WFE) market, while China accounts for 30-40%.
Bernstein notes that a substantial portion of TSMC’s capital expenditure goes toward infrastructure and non-wafer-based equipment, such as packaging and testing technologies, rather than solely wafer fabrication equipment.
The research indicates that technology complexity and onshoring trends are keeping the overall WFE-to-semiconductor ratio elevated, with recent data suggesting that capital expenditure per wafer is rising more rapidly than previously anticipated.
Bernstein’s analysis also points to contrasting market dynamics, describing TSMC as "deflationary" while characterizing China’s semiconductor investment as "inflationary and much bigger."
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