$Taiwan Semiconductor(TSM.US) The news of price increases has become more certain: it is expected that 3nm will increase by more than 5%, and advanced packaging will increase by 10%-20%.

Currently, whether it's cloud-side AI + CoWoS packaging or device-side + Windows on ARM logic, TSMC is pointing towards fuller capacity utilization and higher market share in wafer manufacturing.

Especially, the relatively scarce CoWoS advanced packaging production lines have become a key bottleneck in AI computing power manufacturing. It is said that Nvidia's orders occupy more than half of TSMC's CoWoS capacity. With Nvidia's gross margin approaching 80%, it is almost entirely understandable to lock in TSMC's capacity with higher procurement prices.

The price increase for 3nm is more due to expectations that AI will drive faster replacement of local devices like smartphones in the second half of the year. Higher device-side computing power + memory and thinner phones likely mean that 3nm penetration in devices like smartphones will rapidly become widespread.