TSMC (2330) has recently seen growth in high-end AI chip orders, with its stock price returning to the thousand-dollar mark. TSMC is collaborating with optical component manufacturer Cayin (6789) to enhance their market influence. Considering exchange rate factors, TSMC noted that every 1% appreciation of the New Taiwan Dollar affects its gross margin by 0.4 percentage points. Foreign investment firms maintain their target price and buy rating for TSMC, largely due to the positive correlation between TSMC's PE evaluation and foreign ownership increase with the Taiwanese dollar's appreciation.

Looking ahead to next year, US manufacturers are expected to raise prices by over 10%, while other manufacturers will see price increases ranging from 3% to 5%. TSMC is set to continue offering 2nm foundry services for Intel's NovaLake high-performance CPU and GPU, with brokerages reaffirming their positive ratings.

Cayin, as TSMC's subsidiary, holds a 67.39% stake and is anticipated to have its ex-dividend date on June 27, distributing NT$2.99701565 per share, with payment on July 25. Cayin is expected to see double-digit growth in Q2, benefiting from the surge in AI smartphone upgrades, AR/VR enhancements, and increased specifications for automotive CIS from mainland China clients.

Cayin anticipates stable revenue in the first half of this year, with significant growth expected in the second half as it enters peak season. Additionally, related plans for Meta Service have begun small-scale production for applications in 3D sensing, time-of-flight measurement, and imaging sensors, initially targeting tablet products, followed by smartphones and AR products, which will be advantageous for Cayin.

Moreover, Cayin's Longtan plant is enhancing its production line to improve manufacturing processes and equipment updates, investing in a DUV 193nm lithography platform to strengthen its capabilities in high-end micro optical components and imaging sensor manufacturing, thereby increasing competitiveness. The Longtan plant will also lease part of its space to TSMC for process development, which is expected to expand their collaboration.