TSMC’s Global Expansion to Increase Chip Manufacturing Costs

TSMC’s plan to construct semiconductor manufacturing plants overseas will result in higher chip production costs, which will be passed on to customers. The Taiwanese foundry’s CEO, C.C. Wei, confirmed that microchips produced outside of Taiwan will face elevated manufacturing expenses due to factors like inflation and energy costs. Despite global expansion, TSMC aims to maintain a 53% gross margin by adjusting pricing strategies to cover increased expenses. The company seeks government support and leverages its technological advantage to mitigate costs.

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