Taiwan Semiconductor Manufacturing Company (TSMC) is set to expand its advanced-node manufacturing capacity significantly. The company will construct a new 3nm fabrication facility in Taiwan, expected to begin production in the first half of 2027. Additionally, TSMC is increasing its 3nm capacity in Arizona, with production targeted for the second half of 2027, and plans to introduce 3nm production at its second fabrication plant in Japan by 2028.
Currently, TSMC’s fabrication facilities are operating at high utilization rates, which is boosting profitability through stronger-than-expected demand for leading-edge technologies. The company has experienced a stock gain of 108.6% over the past year, outpacing the industry’s growth of 104.6% and the S&P 500’s increase of 30.3%.
On the microeconomic side, TSM’s current forward 12-month price-to-sales ratio stands at 11.92X, above the industry median of 10.56X. The Zacks Consensus Estimate for TSM’s 2026 earnings has increased by 1.2% in the last 30 days.
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