20231024-招银国际-China_Technology__Implications_of_TSMC_3Q23__cycle_nearing_the_bottom__Positive_on_smartphone_PC_supply_chain_4页_1002kb

TSMC's 3Q23 results showed revenue growth of 13.7% quarter-over-quarter, aligning with guidance and driven by strong demand for 3nm and 5nm technologies, as well as stabilized smartphone and PC markets. Smartphone and HPC segments saw significant QoQ increases, while automotive and DCE segments declined. The company provided positive 4Q23 guidance, indicating a better-than-expected FY23E outlook with improved gross and operating margins. Key outlook points include the semi cycle nearing its bottom, AI demand sustaining growth, and China market recovery expected by 2024. Investment implications favor high smartphone supply chain exposures, such as Luxshare, Q-tech, and Sunny Optical, as well as Chinese foundries like SMIC and Hua Hong due to positive valuation and market reaction to demand stabilization.