TSMC's 'Earnings Call Turns into Funeral'? CFO Responds to Stock Plunge, Admits U.S. Factory Costs '5x Taiwan's'

TSMC held its earnings call on the 17th, but its stock plunged 180 NT dollars the next day, prompting investors to quip, 'The earnings call turned into a funeral.' On the 20th, U.S. financial media CNBC published an exclusive interview with TSMC's CFO, Huang Wei-ming. He responded for the first time to the post-earnings stock drop, emphasizing that the company cannot control financial markets and that its current focus remains on core business fundamentals. He also frankly admitted that building semiconductor fabs in the U.S. costs 4 to 5 times more than in Taiwan.

Regarding TSMC's additional investment of hundreds of billions into U.S. expansion, CFO Huang stated that AI-driven demand still far exceeds supply, and TSMC is 'doing everything possible' to expand capacity to support clients' growth over the coming years. 'We are doing everything we can to scale up within our capabilities to support our customers' growth,' he said. He further pointed out that AI has created a long-term structural demand, and as long as this 'AI megatrend' continues, the company is confident in sustaining profit growth and creating greater value for shareholders.

Amid intensifying market competition, Huang also rarely commented on the competitive landscape, stating that beyond meeting customer needs, TSMC wants to send a clear message to the market: 'We have no intention of ceding any market share to other companies.'

Huang noted that with the additional investment in Arizona, TSMC's cumulative investment in the U.S. will rise to $265 billion, making it one of the largest foreign direct investment projects in U.S. history. While he frankly admitted that U.S. construction costs are about 4 to 5 times those in Taiwan, he said cost efficiency will gradually improve as scale expands, helping to build a complete U.S. semiconductor ecosystem.

Huang frankly stated that as overseas operations continue to grow, the initial dilution effect on the company's profit margins may intensify further. However, overseas expansion cannot be judged solely on short-term costs. TSMC's increased investment in the U.S. will, in the long term, help build a more complete local semiconductor supply chain and industrial ecosystem, while also bringing it closer to U.S. customer demands.

More exclusive insights from Feng Media: · Is TSMC's $100 billion U.S. expansion a 'ghost story'? Bulls and bears clash fiercely; experts decode one move by CEO C.C. Wei: 'He’s hiding a secret' · TSMC’s next ace? CEO Wei personally endorses advanced AI packaging technology; experts reveal 3 Taiwanese firms riding the wave · Predicting where TSMC will build its next 40 fabs in Taiwan; experts estimate one county will 'sweep 18 factories'—its geographical advantage is unmatched