Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has become a preferred stock among billionaire investors for a five-year investment horizon, according to Detik Finance.

Bank of America Securities analyst Haas Liu reaffirmed a Buy rating for the company, setting a price target of 2,560 Taiwan dollars.

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The financial institution stated that market concerns about TSMC's foundry dominance are largely exaggerated.

TSMC's Technological Edge and Expansion Plans

Analyst Haas Liu emphasized that TSMC's scale and technological leadership in advanced nodes are widening its lead over competitors like Samsung and Intel.

The company aims for an approximate 25% compound annual growth rate for its 3nm and 5nm nodes through 2027.

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This expansion is expected to boost monthly production capacity to 230,000 wafers.

Bank of America highlighted that this output will far exceed Samsung's SF3 and Intel's 18A nodes, which are projected at 20,000 to 25,000 wafers per month.

Additionally, TSMC plans an aggressive 70% annual capacity expansion from 2026 to 2028 for its next-generation N2 technology.

The company intends to achieve this by operationalizing five manufacturing fabs simultaneously and reducing technology transfer timelines by 20%.

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Advanced Packaging and Competitive Advantages

In advanced packaging, Bank of America noted TSMC's superior operational execution, with CoWoS yields exceeding 98%.

This contrasts sharply with Intel's EMIB-T pilot yield, currently between 80% and 85%.

Bank of America warned that this yield gap poses a significant risk for Intel if it fails to reach 95% mass production yield by mid-2027, further strengthening TSMC's competitive moat.

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Taiwan Semiconductor Manufacturing Company Limited operates as a specialized semiconductor foundry, producing advanced chips for global clients in AI, high-performance computing, smartphones, automotive systems, and IoT markets.