Can TSM Sustain Gross Margin Improvement Amid Overseas Expansion?

Key Takeaways TSM's gross margin rose 170 bps to 59.5% in Q3 2025 despite higher overseas fab expenses.TSMC guides Q4 gross margin of 59%-61%, with the midpoint showing a 100 bps YoY increase.Taiwan Semiconductor expects scale, automation and government incentives to offset cost gaps.Taiwan Semiconductor Manufacturing Company (TSM) , also known as TSMC, continues to report healthy profitability even as it builds new fabs outside Taiwan. The contract chipmaker is building new fabs across the United States, J ...