TSM/Mature & Specialty Nodes — Scenario Model
Blue = input assumption|Black = computed

Mature & Specialty Nodes — Scenario Model

Current Price
$329
Mature & Specialty Nodes Component
$50/sh
Market Implies
64% chance of upside scenarios
18% decline probability

Scenario Overview

ScenarioEV$/shProbRevenueOp Margin %FcfKey Gate
mega bull$208B$8028%auto content ramp
bull$147B$5619%
base$122B$4718%
bear$73B$2818%chinese competition
decline$60B$2318%capacity reallocation

Gate Milestones

Growth is gated by milestones. Cost step-changes and capability unlocks are tied to specific milestones.

2027
Y2
dresden production
ESMC Dresden begins production for European automotive
Unlocks: Revenue from NXP/Infineon/STMicro/Bosch
ESMC production targeted 2027 [TSMC PR]
2029
Y4
auto content ramp
Auto semiconductor content per vehicle exceeds $1,000 broadly
Unlocks: Volume growth driven by EV penetration and ADAS
IHS Markit secular trend
2029
Y4
chinese competition
SMIC/Hua Hong materially compete at 28nm+
Unlocks: Pricing pressure on commodity mature wafers
Chinese foundry expansion at 28nm+ [TrendForce]
2029
Y4
capacity reallocation
TSMC reallocates mature fab capacity to advanced
Unlocks: Revenue decline as TSMC prioritizes higher-margin nodes
Advanced node demand consumes all incremental capacity [analysis]

Full Year-by-Year Models

Blue = input · Black = computed · Click to expand

Market-Implied Probability Reconciliation

Given these scenario EVs, what probability weights would the market need to assign to produce the current market-implied value of $50/share?

ScenarioMature Nodes EVPer ShareImplied Prob.Weighted Contrib.
mega bull$208B$8027.8%$22
bull$147B$5618.6%$10
base$122B$4717.9%$8
bear$73B$2817.9%$5
decline$60B$2317.9%$4
Total100%$50/sh

Note: These probabilities apply to mature/specialty nodes' contribution to TSMC equity. Advanced logic, packaging, geopolitical premium, and net cash contribute separately.

Target contribution: $50/sh. Residual: $0.0/sh.