Zero One Daily Intelligence Brief — April 11, 2026

TSMC Posts Strongest Month in History as Japan Doubles Down on Rapidus AI Chip Bet

Top Market Signals

TSMC reports record NT$415.2B March revenue, +45% YoY

Taiwan Semiconductor Manufacturing Company (2330 TT) reported March 2026 revenue of NT$415.19 billion, the strongest single month in company history, up 45.2% year-on-year and 30.7% sequentially, and pushing Q1 revenue to $35.71 billion — 35% YoY growth and at the top of prior guidance. The print confirms that AI wafer demand sustained momentum through quarter-end despite the Iran war disruption.

The March number decisively beat consensus and puts TSMC on pace for approximately $158 billion in full-year 2026 revenue, representing 30% YoY growth. Wall Street analysts see another 13% upside from current share price levels and as much as 40% over the next 12 months, with 2026 EPS expected to grow 38.3% to $14.73 and 2027 EPS projected at $18.06 (+22.6%). The AI accelerator segment is expected to sustain 50% CAGR through 2029, reflecting sustained demand from Nvidia, AMD, Broadcom and hyperscaler custom silicon customers. TSMC reports Q1 earnings on April 16, where management commentary on CoWoS capacity, wafer pricing, and 2nm ramp will set the tone for the rest of the sector.

Linked stocks: 2330 TT, NVDA US, AVGO US Sources: 現在是買進台積電好時機？外媒曝上漲空間還有這麼多

Japan commits additional $4 billion to Rapidus, total AI chip bet nears $16 billion

Japan approved ¥631.5 billion ($4 billion) in additional subsidies to Rapidus Corp., accelerating the startup's push into AI chipmaking and bringing Japan's total commitment to the 2nm foundry venture close to $16 billion. The decision underscores Tokyo's determination to re-enter the leading-edge logic race that Japan's domestic champions abandoned in the 2000s.

Rapidus is building a 2nm foundry in Hokkaido in partnership with IBM, targeting pilot production this year and volume ramp in 2027. The additional subsidy is intended to accelerate customer acquisition in the AI accelerator market, where Rapidus will compete directly with TSMC and Samsung Foundry. Japan's approach — combining government capital with private-sector execution — mirrors Taiwan's historical semiconductor playbook. The strategic motivation extends beyond economics: Japan wants domestic supply of the most advanced chips to reduce geopolitical vulnerability and support Prime Minister-backed national security priorities. The scale of commitment now rivals the US CHIPS Act grants to Intel, TSMC Arizona, and Samsung Texas on a per-company basis.

Linked stocks: 2330 TT, INTC US, 005930 KS Sources: Bloomberg

Foxconn posts record NT$803.7B March revenue as AI servers overrun seasonal weakness

Hon Hai Precision Industry (Foxconn, 2317 TT) reported March 2026 revenue of NT$803.7 billion, up 45.6% year-on-year and 34.9% month-on-month, pushing Q1 revenue to a record NT$2.13 trillion and marking all-time highs for both the month and quarter. Management attributed the result to continued AI server shipments offsetting the usual Q1 seasonal weakness in traditional ICT manufacturing.

The Foxconn print is notable for two reasons. First, March is historically a weak month for consumer electronics assembly, yet Foxconn grew 34.9% sequentially — a clear indicator that AI server volumes are not following seasonal patterns. Second, the 45.6% YoY expansion dramatically exceeds Foxconn's typical growth range and confirms the company has successfully pivoted a meaningful portion of capacity to Nvidia GB200/GB300 server assembly and custom ASIC builds for hyperscalers. Management expects Q2 to show both seasonal growth and continued year-over-year gains, implying the AI server ramp is accelerating rather than plateauing. The broader read-through: Taiwan's AI supply chain — from TSMC wafers through ASE packaging into Foxconn system assembly — is operating at full tilt and validating the multi-year capex thesis that equipment makers and substrate suppliers have been pricing in.

Linked stocks: 2317 TT, NVDA US, 2330 TT Sources: 日月光建新廠、鴻海首季營收創高、智慧顯示展登場 本周大事回顧

Phison raises NT$42 billion for NAND inventory, warns shortage may last a decade

Phison Electronics (8299 TT) CEO Pan Chien-Cheng said the company is raising over NT$42 billion through a NT$12 billion syndicated loan and $800 million in convertible bonds to stockpile NAND Flash memory, warning that the shortage beginning in H2 2026 could be "extremely severe" and may be unsolvable within the next ten years. The comments came at Phison's 26th anniversary family day event in Taichung, where management also announced an NT$400 million one-month bonus to employees.

Pan's argument is that AI data generation is growing at exponential rates while memory supply can expand only around 50% annually — a structural mismatch that cannot be closed through conventional capacity additions. As of March 31, Phison held over NT$50 billion in NAND Flash inventory and is negotiating advance payments from customers to equitably distribute financing burden across the supply chain. Pan expressed concern about memory manufacturers' gross margins exceeding 80% and retail pricing that has risen from $1 to $90 per unit in some categories, warning that unsustainable pricing structures threaten long-term industry health. The NT$42 billion war chest is unusual in size for Phison and signals management confidence that memory prices will remain elevated for multiple quarters.

Linked stocks: 8299 TT, 005930 KS, 000660 KS, MU US Sources: 群聯備逾400億元銀彈大買 NAND Flash 潘健成：缺貨問題十年內難解, 經濟日報

ASE breaks ground on NT$108 billion Kaohsiung fab as advanced packaging capacity races

ASE Technology (3711 TT) held a groundbreaking ceremony for its new Renwu Industrial Park facility in Kaohsiung on April 10, committing over NT$108.3 billion in investment and projecting NT$177.3 billion in future output. Chief Operating Officer Wu Tian-yu said ASE is breaking ground on six new factories in 2026 — a historic high — and indicated the company's NT$70 billion annual capex guidance could increase when Q1 earnings are released.

The Renwu expansion is ASE's largest single-site commitment since the 2018 SPIL acquisition and is designed specifically for advanced packaging capacity — CoWoS, SoIC, fan-out panel-level packaging, and next-generation hybrid bonding. With TSMC running at sold-out CoWoS capacity through 2027 and chiplet-based architectures becoming standard for AI accelerators, OSAT capacity has become the binding constraint on AI chip delivery. ASE's aggressive build-out aims to capture the overflow demand that TSMC's in-house packaging capacity cannot absorb. The NT$177.3 billion projected output from Renwu alone would represent roughly 25% of ASE's current annual revenue run rate, suggesting the project is sized for the AI chip demand wave the company expects through the late 2020s.

Linked stocks: 3711 TT, 2330 TT, NVDA US Sources: 日月光建新廠、鴻海首季營收創高、智慧顯示展登場 本周大事回顧

Taiwan optical interconnect supply chain rerates as CPO commercialization arrives in 2026

Analysts raised price targets on Accton Technology (2345 TT) and LandMark Optoelectronics (3081 TT) as AI's high-speed transmission requirements drive accelerating demand for 1.6T optical modules and co-packaged optics (CPO), with 2026 positioned as the commercial ramp year for silicon photonics in Taiwan's supply chain. The upgrades signal institutional acceptance that CPO is the next capacity gating technology for AI data centers.

The underlying thesis: traditional copper interconnects cannot sustain the data rates required by Nvidia's Rubin generation and its successors, forcing a transition to optical interconnect technology. Accton, the leading Taiwan networking switch ODM, is the primary beneficiary of the 800G-to-1.6T switch upgrade cycle, with AI accelerator switches becoming the fastest-growing product category. LandMark Optoelectronics supplies indium phosphide (InP) epitaxy wafers — a critical input for the lasers used in high-speed optical transceivers — and has been running at near-full capacity utilization. Analysts expect 1.6T optical module shipments to ramp meaningfully through 2027, with TSMC's CoPoS (Compact Photonics on Substrate) pilot line active and potentially reaching volume in H2 2026. The supply chain repricing mirrors the substrate and equipment rallies — a recognition that the physical layer of AI infrastructure is the binding constraint, not the compute layer.

Linked stocks: 2345 TT, 3081 TT, NVDA US Sources: AI 高速傳輸需求強勁 法人調高兩檔供應鏈目標價

先聲 First Word — Exclusives from Chinese-Language Sources

Sunkwan hits four consecutive limit-ups as advanced packaging equipment demand explodes

Semiconductor equipment maker Sunkwan (辛耘, 3583 TT) hit four consecutive limit-up days this week, closing Friday at NT$673 (+45.99% weekly) on record volume, driven by surging demand for advanced packaging tools used in CoWoS, WMCM, SoIC, and CoPoS processes. Foreign investors accumulated 4,307 units and domestic funds added 667 units. The company plans to complete its Hukou Phase 2 facility in H2 2026 and a larger Tainan plant in 2027, with full capacity deployment expected in 2028 and self-manufactured equipment output doubling. (11 Apr 2026) Source: 〈熱門股〉先進封裝需求旺 辛耘本周連飆４根漲停創新高

Apple defies 40% memory price surge with sub-$600 MacBook launch

As the AI arms race has driven memory prices up roughly 40%, forcing the entire PC industry to raise prices to survive, Apple launched a sub-US$600 MacBook in March — positioning it as cheaper than an iPhone. The strategy leverages Apple's vertical integration: proprietary unified memory architecture, in-house M-series chip design, and long-term supply contracts insulate it from the volatile DRAM/NAND spot market. The move is designed to capture market share in the budget laptop segment while competitors absorb margin pressure from input cost inflation. (11 Apr 2026) Source: 同業面臨 40% 漲價風暴，蘋果為何敢賣「比 iPhone 還便宜」的筆電

WNC charges toward NT$5 billion goal on LEO satellite and 800G switch momentum

Networking equipment maker WNC (啟碁, 6285 TT) surged 25.6% weekly to NT$225.5 on record March revenue, with the rally supported by its position as the primary terminal equipment supplier to the world's largest LEO satellite operator and its entry into the 800G enterprise switch market. Management expects LEO segment revenue to grow 40-50% annually, with contribution rising from 10% to 15-20% of total sales. 800G switches begin volume shipments in Q3 2026, targeting over NT$5 billion in annual contribution. Investment trusts bought for five consecutive sessions. (11 Apr 2026) Source: 〈熱門股〉啓碁單周強漲25%創波段新高 低軌衛星與高階交換器雙動能齊發