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Investing.com -- Morgan Stanley has identified leading Asia chip stocks positioned to benefit from artificial intelligence expansion, with TSMC and Winbond emerging as top contenders in the sector.
The semiconductor landscape in Asia continues to evolve rapidly as AI applications drive demand for advanced manufacturing capabilities. Morgan Stanley’s analysis highlights companies that are strategically positioned to capitalize on this growth trajectory.
Here’s a closer look at the top performers in Asia’s chip sector according to Morgan Stanley:
1. TSMC
Taiwan Semiconductor Manufacturing Company stands out as the premier choice in Asia’s chip sector. The company is poised to significantly expand its Chip-on-Wafer-on-Substrate (CoWoS) capacity to 93,000 wafers per month by 2026, addressing bottlenecks in NVIDIA’s NVL72 server rack architecture. TSMC plans to double both its CoWoS and System on Integrated Chips (SoIC) capacity in 2025, though expansion may slow in 2026.
The company’s continuous development of new manufacturing nodes enables higher transistor density while reducing power consumption, cementing its leadership position in advanced semiconductor fabrication.
In recent news, Taiwan Semiconductor Manufacturing Co. reported second-quarter 2025 consolidated revenue of NT$933.79 billion and net income of NT$398.27 billion. The company also announced plans to phase out its 6-inch wafer manufacturing over the next two years, while analysts at Bernstein reiterated an Outperform rating on the stock.
2. Winbond
Morgan Stanley designates Winbond as its top pick in the sector, coinciding with an upgrade of the industry outlook to "Attractive" heading into the second half of 2025. Analysts express a clear preference for AI-related chip stocks over non-AI counterparts.
With concerns about semiconductor tariffs and foreign exchange impacts subsiding, Morgan Stanley anticipates further sector revaluation. The firm also suggests Winbond represents an excellent opportunity to gain exposure to key investment themes projected for 2026.
As AI continues to drive semiconductor demand, these Asian chip manufacturers are strategically positioned to benefit from industry tailwinds. Investors looking for exposure to the semiconductor sector may find these companies particularly noteworthy as the industry navigates the evolving technological landscape.
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