Foundry: Much larger N2 TAM and faster A14 expansion; mature foundry upcycle underway

Our proprietary bottoms-up N2 foundry TAM analysis points to substantially larger demand of 320kwpm by 2028E, versus our prior estimate of approximately 230kwpm a year ago. The increase is driven primarily by stronger server CPU demand and accelerating AI compute deployments, particularly as a growing number of ASIC programs ramp into volume production alongside GPUs. We expect server CPUs and accelerators to account for 54% of N2 foundry demand by 2028 (PCs 19%, smartphones/tablets 26%). We raise industry N2 capacity at end-2028 to 312kwpm from 230kwpm, with TSMC at 210kwpm and Intel exceeding 60kwpm;