TSMC

3 months agoNews Editor

TSMC says overseas fabs will weigh on margins as U.S. expansion lifts costs

Taiwan Semiconductor Manufacturing Co. reported a record second quarter for 2026, posting a 67.7% gross margin and NT$706.6 billion in net profit, up 77.4% from a year earlier. But on the same earnings call, CFO and spokesperson Wendell Huang warned that new overseas fabs will dilute gross margin for years. The impact is expected to be about 2 to 3 percentage points in the early stage and may widen to 3 to 4 percentage points later. According to CNBC, the pressure is tied to a broader U.S. push to bring advanced chip manufacturing back onshore under President Donald Trump. Morningstar senior equity analyst Phelix Lee estimated that chips made by TSMC in the United States cost 20% to 50% more than those produced in Taiwan, with the final gap depending on subsidies, tax-credit treatment and other cost swings. The report also said TSMC’s cumulative U.S. investment has reached $265 billion, including prior commitments made during the CHIPS Act period and a newly announced $100 billion plan for advanced semiconductor manufacturing and advanced packaging. Nikkei Asia previously reported that TSMC plans to raise foundry prices by 5% to 10% from early 2027, with extra premiums of 10% to 15% for some HPC orders that exceed prior forecasts.

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TSMC

3 months agoNews Editor

TSMC’s planned mature-node price hike may start in January, while IC designers seek more capacity

Taiwan Semiconductor Manufacturing Co. (TSMC) is planning to raise foundry prices for mature process nodes starting in January next year, according to a report by Taiwan Economic Daily cited by Odaily. The report said the planned increase would come after price hikes on advanced process nodes. Even with higher mature-node pricing on the table, IC design companies still intend to negotiate for more foundry capacity for next year than they secured this year. Industry sources said they need additional support to keep expanding their operating scale. The report also said production costs for IC makers had already risen in the first half of this year after packaging and testing houses, along with foundries other than TSMC, lifted quotes for mature-node services. In response, companies had already discussed product price increases with clients. If TSMC goes ahead with the mature-node increase next year, IC design firms are expected to reopen pricing talks with customers. The report added that customers would then try to pass the higher costs further down the chain, creating a ripple effect across the supply chain.

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