Vendor Strategy
TSMC
TSMC Q1 Confirms AI Compute Arms Race Has Entered the Chip Inflation Era
TSMC Q1 earnings show HPC crossed 60% revenue share for the first time, reaching 61%, marking a structural shift in AI compute demand. Gross margin hit 66.2% historical high, while CoWoS advanced packaging capacity remains tight through 2027. Supply-demand imbalance drives chip inflation - AI chip unit costs unlikely to decline in 2-3 years, and the window to lock long-term compute contracts is narrowing.