Susquehanna's Hosseini on TSMC, Chips Sector

The transcript discusses TSMC's stock rating and market outlook, highlighting a positive rating and a price target of $135. It covers trends in the chip industry, noting a significant inventory correction and a slow recovery outside of AI. The challenges of shifting manufacturing to the US are explored, focusing on the CHIPS Act and fab readiness. Geopolitical impacts, particularly the Huawei ban, are discussed, emphasizing TSMC's critical role in the tech industry. Finally, the transcript examines TSMC's involvement in AI, noting its potential but current limited revenue impact.

What is the main focus of TSMC in the second half of the year?

• Launching new products

• Managing customer inventories

• Increasing marketing efforts

• Expanding production capacity

What is one of the main challenges TSMC faces in the US?

• Competition from local companies

• Lack of skilled labor

• High operational costs

• Unresolved subsidies from the CHIPS Act

Since when has TSMC been dealing with geopolitical issues?

• 2010

• 2016

• 2018

• 2020

Which major tech companies rely on TSMC for chip manufacturing?

• Apple, Amazon, Google, Microsoft

• Samsung, Intel, AMD, Qualcomm

• Dell, HP, Acer, Asus

• Sony, LG, Huawei, Lenovo

What percentage of TSMC's revenue is currently attributed to AI?

• Exactly 5%

• Around 15%

• Less than 10%

• More than 20%

What is the expected impact of AI on TSMC's revenue in the future?

• Immediate and significant

• Gradual and increasing

• Negligible

• Decreasing over time

Which company benefits from TSMC's advanced packaging for AI?

• Intel

• Qualcomm

• AMD

• NVIDIA