Global/China AI Semis: TSMC/MediaTek Preview, China CoWoS/Memory, CPO/NPO

Morgan Stanley's Investor Presentation covers Global/China AI Semis, with a preview of TSMC and MediaTek earnings as well as China CoWoS, memory, and CPO/NPO topics. The report holds a constructive view on the AI semiconductor outlook, with top picks including MediaTek (Top Pick), TSMC, SMIC, Aspeed, Alchip, KYEC, ASE, ASMPT and AllRing in AI; and CXMT, Macronix, AP Memory (Top Pick), Nanya Tech, Winbond and GigaDevice in memory. Long-term demand drivers include chip inflation (rising wafer, OSAT and memory costs create margin headwinds for chip designers in 2026), AI cannibalization of non-AI semis, and DeepSeek-driven inferencing demand. The report expects the global semi market to reach US$2.5tn in 2027 with AI semis contributing one third, and AI semi TAM of about US$809bn;