Breakingviews - TSMC foots the bill for global chip supremacy

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Breakingviews - TSMC foots the bill for global chip supremacy
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From Breakingviews - TSMC foots the bill for global chip supremacy

. Notably, operating profit margin for the period is forecast to be as low as 41.5%, higher than rivals but more than 10 percentage points less than in the three months to December.

Fewer customer orders, cost inflation and unfavourable exchange-rate movements are factors. But TSMC also flagged R&D expenses will rise by a fifth this year, as developing next-generation technology gets pricier. Moreover, the company's new factories in the United States are adding to TSMC's expenses: executives said that construction costs are five times higher in America than in Taiwan.

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