TSMC – Taiwan Semiconductor Manufacturing Co

The world’s largest semiconductor foundry is facing multiple issues ranging from geopolitical and macro to economic concerns. While the market for foundry products is weak, we see some good opportunities for the companies top-line products, and overall this should help to achieve sales growth in the region of 10%. The company has an excellent pricing power given its a new generation of miniaturization and chipset packaging technology. As an early cycle company, we would expect the share price to bottom out relatively soon in 2023.