Cost ChallengesTSMC 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.
Earnings ImpactTariff-related impact is inevitable, leading to a reduction in 2025-26E earnings by 4-5%.
Operational RisksIntegrating another foundry's production lines is highly challenging due to differences in toolsets, configuration, and process flow, requiring significant operational hurdles to be overcome.