Woofun AI reports that TSMC’s CFO Wendell Huang indicated that the commissioning of overseas fabrication plants will continue to dilute the company's gross margin. While second-quarter net profit rose 77.4% year-on-year to a record high with a 67.7% gross margin, Huang projected margin pressure of 2% to 3% in early years, potentially expanding to 3% to 4%.

This outlook follows TSMC’s cumulative $200 billion investment commitment in the United States, including a recent $100 billion project for advanced manufacturing and packaging, driven by U.S. industrial policy. Morningstar analysts estimate U.S. chip manufacturing costs are 20% to 50% higher than in Taiwan. Consequently, TSMC plans to raise prices for advanced and mature process foundry services by up to 10% in 2027 to offset these elevated expenses.