TSMC(US:TSM) Huan Qiu Wang Zi Xun·2026-01-05 07:21Group 1 - TSMC's expansion in Arizona has significantly harmed its profitability, with gross margins for 5nm chips in the U.S. shrinking by nearly 87% compared to Taiwan due to high labor costs and increased wafer depreciation expenses [1] - The depreciation costs for the Arizona facility are approximately four times higher than those in Taiwan, as the U.S. plant's output is only a quarter of Taiwan's, leading to substantial cost pressures [1] - The high costs have resulted in the largest quarterly profit decline for TSMC's Arizona plant, raising concerns about the sustainability of chip manufacturing outside Taiwan [1] Group 2 - TSMC's efforts to establish a semiconductor hub in Phoenix, Arizona, face numerous challenges, including complex regulations, labor shortages, and high costs [2] - The construction of the plant is perceived as influenced by political pressures rather than purely commercial interests, with implications for Taiwan's semiconductor industry [2] - Concerns have been raised by Taiwanese officials regarding the long-term impact of TSMC's U.S. operations on the local semiconductor industry and the potential exploitation of Taiwan's resources [2]