Taiwan Semiconductor Manufacturing Company (TSM) is expanding its fabs outside Taiwan to meet the demand for AI and advanced computing chips. Despite higher operating costs, TSMC’s profitability remains strong with a 59.5% gross margin in Q3 2025. Revenues grew 40.8% year over year to $33.1 billion.
TSMC expects a near-term margin dilution of 2% due to overseas fabs, but aims for a gross margin between 59% and 61% in Q4. Analysts predict revenue growth of 33.7% in 2025 and 20.6% in 2026. Intel and GlobalFoundries are also expanding in AI chip manufacturing.
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Read more at Nasdaq: Can TSM Sustain Gross Margin Improvement Amid Overseas Expansion?
