Daiwa: Demand from clients such as NVIDIA, AMD, Tesla etc. is soaring, TSMC's production of 3nm chips is in high demand and urgently expanding.

Morgan Stanley pointed out in its latest "AI Supply Chain Industry" report that AI giants such as Nvidia, AMD, and even electric car giant Tesla are actively seizing 3nm production capacity, causing a shortage of 3nm production capacity at TSMC and prompting emergency capacity expansion. Morgan Stanley estimated that by the end of this year, TSMC's 3nm production capacity will be increased by an additional 20,000 pieces per month to 110,000 to 120,000 pieces, higher than expected; by 2026, it will further increase to 140,000 to 150,000 pieces, resulting in TSMC's capital expenditure for next year to increase from the original plan of $43 billion to $48-50 billion.