Cost InflationTSMC is accelerating its US fab plans, with P2 now expected to come online quarters earlier than its prior 2028 timeline, leading to wider GPM drag due to cost inflation and tariff-driven costs.
Currency ImpactThe recent TWD appreciation could lead to GPM and revenue impact, but it is well anticipated by the market and should not hurt TSMC’s long-term value proposition or competitiveness.
Gross Margin PressureHigher overseas fab spending is expected to lead to greater gross margin dilution of 3-4% annually in a few years.