Bank of America: Upgrades valuation forecasts for TSMC and ASE; advanced process and advanced packaging remain the most critical barriers in the industry chain

Glonghui, June 25 — According to estimates by Bank of America, the global server CPU-related semiconductor manufacturing market is expected to expand from $15 billion in 2025 to $49 billion in 2028. Of this, the proportion of outsourced production will rise from 52% to 71%, reflecting the continually strengthened core position of pure-play foundries such as TSMC in the high-end CPU sector. The scarcity of advanced process capacity, combined with the parallel ramp-up of multiple clients and architectures, makes the foundry segment the most certain beneficiary in this upward cycle. Bank of America forecasts that the server CPU-related packaging and testing market size will increase from $1.9 billion in 2025 to $9.6 billion in 2028, with its share of the advanced packaging market rising from 11% to 24%. Bank of America has simultaneously raised its valuation expectations for leading suppliers in the supply chain such as TSMC and ASE, noting that advanced process and advanced packaging remain the most formidable barriers in the value chain.