From my knowledge: TSMC (Taiwan Semiconductor Manufacturing Company) has historically maintained a "long-term gross margin target of 53% or higher." In recent years, this margin has fluctuated due to several factors: the transition to advanced nodes (like 3nm, which initially carries lower margins), higher utility costs in Taiwan, and the expansion of overseas fabrication plants in the US, Japan, and Germany, which typically have higher operating costs than their Taiwanese counterparts. In 2022, margins peaked near 60% due to high utilization and price hikes, before normalizing in 2023 and 2024 as the 3nm ramp-up accelerated and the semiconductor cycle softened.

To provide the most accurate "projected" data for 2025 and 2026, and to capture the exact fiscal 2024 and 2025 actuals, I will check the latest financial reports.

From my knowledge: TSMC (Taiwan Semiconductor Manufacturing Company) is the world's largest dedicated independent semiconductor foundry. Historically, management has communicated a long-term gross margin target of "53% or higher." In recent years, margins have fluctuated based on the ramp-up of new technology nodes (like 3nm), capacity utilization rates, and the impact of inflation and electricity costs in Taiwan. However, the explosion in AI demand has significantly improved their product mix toward high-margin advanced nodes (N3, N5).

TSMC Gross Margin Reaches Record Levels Amid AI Surge

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Projections for 2026 Indicate Further Margin Expansion

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Advanced Nodes Drive Profitability Premium

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Structural Factors Influencing Forward Margins

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