According to a research report published by Morgan Stanley, almost all of it is based on the Arm architecture (Arm-based).Hoffreespins2021All CPU chips are manufactured by TSMC. Compared with the x86 CPU supplied to Intel and AMD, TSMC accounts for only about 30%. Therefore, with the popularity of Windows system personal computers (WoA PC) using Arm-based chips, it is believed that TSMC's CPU contract manufacturing market share will increase. Looking forward to more significant growth in WoA PC sales from 2025, Morgan Stanley now expects TSMC's share of contract manufacturing in the CPU market (including Arm and x86-based CPU) to rise from 37 per cent in 2023 to nearly 60 per cent in 2028, contributing about 15 to 20 per cent of revenue within five years.
Morgan Stanley believes that TSMC's future growth will rely more on Arm-based CPU and semi-finished products of artificial intelligence than Intel's x86 CPU outsourcing, because the development prospects of the latter are relatively uncertain, and TSMC's future revenue growth will come more from artificial intelligence GPU and ASIC, reiterating its "overweight" rating, raising the target price of Taiwan shares from NT $860 to NT $928. Taking into account the contribution of WoA processors, Morgan Stanley raised its earnings per share forecast for TSMC by 3% in 2026, believing that the medium-term growth prospect is better, and the best target price is 1.Hoffreespins2021180 New Taiwan dollars.
