Goldman Sachs research report indicates that Taiwan Semiconductor's (2330.TW) expected capital expenditure and CoWoS capacity have been raised in response to customers' stronger demand for AI. The firm has raised the company's target price from 1,230 New Taiwan Dollars to 1,270 New Taiwan Dollars and reiterated a 'buy' rating. The firm stated that the company previously proposed to achieve a compound annual growth rate of 15% to 20% in revenue over the next 5 years.

The firm has raised Taiwan Semiconductor's full-year CoWoS capacity for 2024 to 2026 to 0.322 million, 0.635 million, and 1.02 million, implying annual growth rates of 124%, 97%, and 61% respectively. It is expected that CoWoS wafer shipment capacity will reach 0.036 million, 0.067 million, and 0.1 million per minute by the end of each year from 2021 to 2026. In addition, the firm maintains its forecast for the company's capital expenditure this year at 30.1 billion US dollars, and has raised next year's and 2026's capital expenditure from 36 billion US dollars and 40 billion US dollars to 40 billion US dollars and 44 billion US dollars, to reflect stronger CoWoS expansion and advanced node demand, as well as increased customer engagement with N2 AI at a faster pace. (vc/k)

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