TSMC earnings call
TSMC's earnings call today was packed with information.
In my previous calculations, based on the proportion of U.S. capacity and gross margin, I estimated that the U.S. fab would reduce TSMC's overall gross margin by 1.5-2%.
However, TSMC stated today that considering the dilution of gross margin by the U.S. fab, the long-term gross margin outlook is maintained at above 53% (vs. 1Q25's 58.8%), which is a more negative impact than my previous estimate. The reason is that TSMC also factored in costs caused by inflation and tariffs.
What does this mean? TSMC has demonstrated how to calculate the potential impact of inflation and tariffs on gross margin. If we apply this logic to other manufacturers, we must first consider that TSMC has the ability to raise prices for its customers.
Jokingly (but seriously), TSMC might have unintentionally held another earnings call for other companies.$Taiwan Semiconductor(TSM.US)
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