10.22.2001
Attractive near-term potential

• Sources indicate resilient near-term business strength for TSMC, as firm benefits from strong order flows on 0.13 / 0.15 / 0.18um advanced technology processes. Our channel checks suggest NVIDIA may double monthly orders by year-end, due to market share gain in PC OEM market from ATI (US, UMC customer) which recently failed attempted new product roll-out. Currently, we estimate NVIDIA accounts for 15-18% of TSMC monthly revenue, with XBOX GPU and graphic chip orders. Further share price upside probable on improving fundamentals expected for Dec. and Jan.