TSMC’s earnings call is coming up soon, as Shen Wan-jun reveals which stocks are worth watching amid advances in packaging technology changes

All eyes are on TSMC (2330); its Q1 earnings call is set to officially take place on April 16. With AI demand continuing to drive the pace, the real industry bottleneck and breakout point are no longer just a matter of shrinking down to smaller and smaller process nodes, but rather advanced packaging. In the face of this semiconductor paradigm shift, senior analyst Shen Wan- Chun, who has a science and engineering background and more than a century of fund-trading experience, has shown investors a path to see through the “capital code” by looking at “technology trends.”

Shen Wan- Chun’s investment philosophy in the AI trend: technology evolution beats short-term EPS

After graduating from National Chiao Tung University’s Department of Electrical Engineering, Shen Wan- Chun was a hands-on product engineer at TSMC. With a deep understanding of semiconductor core technologies, he went to the U.S. to earn a master’s degree in finance and economics, and then switched careers into the financial industry. During his 18 years of institutional trading career, he managed more than 30 billion TWD in capital and won 18 “Fund Diamond Awards,” making him one of the few who can accurately “translate technology language into investment pricing.”

In the AI wave, Shen Wan- Chun places extreme emphasis on “trends matter more than anything.” If you can’t make sense of AI becoming real-world technology and the big picture of the tech war between the U.S. and China, relying only on reading headlines or technical charts is destined to leave you without the opportunity to earn wealth from big waves. And because technology changes so fast, “tracking technology evolution” is more important than “looking at short-term EPS.” In the early stage of a technology paradigm shift, a company’s value depends on what “new technology it has positioned itself for.” When technologies keep iterating (e.g., from copper interconnects to silicon photonics), the market’s extremely high P/E multiples reflect the future several years of its non-substitutability.

He also points out that Taiwan’s ultimate moat is trust and speed. In this AI contest, TSMC and the supply chain within 50 kilometers can deliver a one-day response loop of “problems by morning, bugs fixed by night.” This “extreme trust and efficiency”—allowing Nvidia and AMD to deliver sensitive information with no reservations and without having to sign cumbersome contracts—is an absolute advantage that China and South Korea cannot replicate.

Breaking through physical limits: Two major changes and breakthroughs in advanced packaging in 2026

As TSMC’s earnings call approaches, beyond when current CoWoS capacity can meet market demand, foreign institutions and institutional investors have already set their sights on next-generation packaging technologies that are expected to trigger a major surge in 2026.

Breakthrough 1: The ultimate in 3D stacking — SoIC ( system-integrated chips )

Moore’s Law faces severe physical limits and high-cost walls in the 2-nanometer era. To improve compute density, future chips will move from “planar lateral stitching” (such as today’s 2.5D CoWoS) to “3D vertical stacking” (3D SoIC).

Trend highlight: SoIC uses a direct bonding technique without solder bumps, allowing HBM (high-bandwidth memory) and logic ICs to be stacked vertically like building floors. This significantly shortens transmission distances and reduces power consumption. As TSMC’s AP fabs in places like Chiayi are gradually completed, 2026 is seen as the turning point when 3D packaging fully explodes in high-performance computing (HPC).

Breakthrough 2: The game-changer for cost reduction and efficiency gains — FOPLP ( fan-out panel-level packaging )

At present, most chip packaging is done on “round” silicon wafers, and the edges inevitably create waste. With capacity extremely tight, the industry has turned its attention to “square” panel-level packaging.

Trend highlight: By using large-sized glass or panel substrate to replace the traditional silicon interposer layer, its area utilization and production efficiency are several times higher than that of 12-inch wafers. This technological breakthrough not only eases the capacity anxiety of advanced packaging, but also offers Taiwan’s traditional “panel fabs” the chance to transform their existing dust-free rooms into a “semiconductor packaging factory” miracle path.

TSMC earnings call trend indicator: core beneficiary stocks you can observe

Based on Shen Wan- Chun’s “trend-based stock selection” logic and the capital expenditure guidance that’s coming with the upcoming earnings call, the following stocks occupy key strategic positions in the race for advanced packaging and AI infrastructure:

1. Absolute core: TSMC (2330)

Investment rationale: The “quality control center” for AI compute deployment and the party setting technical specifications. The extent of the upward revision in its 2026 capital expenditure will directly determine the stock price ceiling for the entire supply chain.

2. Two champions in advanced wet processes and equipment: U‑Jiun (3131), King Yuan (3583)

Investment rationale: With an increase in the number of layers in advanced packaging and 3D stacking, the tolerance for “cleaning and etching” approaches zero. As a wet-process equipment supplier at the heart of TSMC, these two companies don’t just sell equipment; their later high-margin chemical consumables and maintenance fees will bring strong cash flow as capacity expands.

3. The grinding giant in advanced packaging: USI (1560)

Investment rationale: In the SoIC and hybrid bonding (Hybrid Bonding) technologies, the “nano-level flatness” on the wafer surface is the key to success or failure. USI’s high-end diamond disks have a very high market share in TSMC’s advanced process, making them rigidly demanded consumables driven by technology evolution.

4. A contrarian dark horse for FOPLP: Innolux (3481)

Investment rationale: Leveraging existing dust-free facilities in legacy panel fabs and experience in handling glass substrates, Innolux is actively moving into the FOPLP space. This is a classic “technology transformation theme stock,” suitable for investors who believe the panel industry will find its second spring in the AI era.

5. Infrastructure and energy gatekeeper: Delta Electronics (2308)

Investment rationale: Shen Wan- Chun specifically points out that behind AI compute is massive power consumption. Delta Electronics’ complete layout in high-end server power supply management and liquid cooling heat dissipation technologies is an indispensable foundation supporting the operation of all AI servers.

2026 is the key year for AI infrastructure to move from “building in the cloud” to “real-world AI deployment.” When faced with the upcoming TSMC earnings call, investors should focus on the long-term development of the technology roadmap, not just the numeric fluctuations of a single quarter. As Shen Wan- Chun said: “Find the best mountain, find the strongest dragon vein, and then let the big players help you make money.”

This article, “With TSMC’s upcoming earnings call, Shen Wan- Chun reveals the individual stocks worth paying attention to amid advanced packaging changes,” first appeared on Lian News ABMedia.