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.
Gross Margin PressureHigher overseas fab spending is expected to lead to greater gross margin dilution of 3-4% annually in a few years.
Tariff ImpactTariff-related impact is inevitable, leading to a reduction in 2025-26E earnings by 4-5%.