Sands Capital Management, LLC - Global Growth on Taiwan Semiconductor Manufacturing Company
Thesis
TSMC is positioned at a critical bottleneck in advanced AI-chip manufacturing. First-quarter gross margin exceeded expectations, and Sands believes the improvement reflects durable demand for leading-edge nodes and advanced packaging. Demand for N2 through N5 nodes should support its role in AI CPUs and accelerators. Continued customer reliance after evaluating alternative packaging approaches reinforces the perceived technological advantage and ecosystem depth.
“We believe that major customers’ continued reliance on TSMC, even after testing alternatives, underscores the company’s technological advantage and ecosystem depth.”
Key risks
- Competitor advances in semiconductor packaging