HSBC upgraded TSMC to Buy based on relative valuation and expects for a strong 2H 2017 on 10nm and 16nm with 7nm shares gains likely in 2018. Analyst Steven Pelayo believes TSMC is reasserting its technology leadership and will benefit from high-performance computing on 16nm and a strong Apple cycle on 10nm, and expects market share gains at the 7nm node in 2018e.

Ansys (ANSS) announced a collaboration with TSMC (TSM) on multiphysics software for TSMC's Compact Universal Photonic Engines. COUPE is a cutting-edge Silicon Photonics integration system and Co-Packaged Optics platform that mitigates coupling loss while significantly accelerating chip-to-chip and machine-to-machine communication. TSMC COUPE, along with Ansys multiphysics solutions that are integrated with Synopsys' 3DIC Compiler unified exploration-to-signoff platform, enables the next generation of silicon photonics and co-packaged optics designs for applications in AI, datacenter, cloud, and HPC communications. The work spans multiple areas, including fiber-to-chip coupling, integrated electronic-photonic chip design, power integrity verification, high-frequency electromagnetic analysis, and critical thermal management.

Argus raised the firm's price target on TSMC to $160 from $130 and keeps a Buy rating on the shares. The analyst cites the company's Q1 earnings and revenue beat, stating that while the stock sold off on cautious company guidance for industry demand growth in 2024, the firm still expects solid company growth as inflation recedes and electronic device demand picks up. Throughout a down 2023, demand for the company's 5nm products remained strong, and TSMC has successfully ramped 3 nm node products, the firm added.