Core Viewpoint - TSMC's Kumamoto 2 factory in Japan has begun construction on surrounding facilities, with the main construction expected to continue in the second half of the year, reflecting the Japanese government's expectations [1][2]. Group 1: TSMC's Operations and Developments - The Kumamoto 2 factory will be a focal point in TSMC's upcoming earnings call, with significant attention on its operational outlook and the impact of U.S. tax developments and currency fluctuations on TSMC's performance [2]. - TSMC's investment strategy is influenced by customer demand, business opportunities, operational efficiency, government support, and economic costs, with the company asserting that its U.S. investment plans will not affect existing investments in other regions [2]. - TSMC's first joint venture factory in Kumamoto is set to begin mass production in 2024, alongside a joint venture factory in Dresden, Germany [3].

Group 1 - The significant appreciation of the New Taiwan Dollar (NTD) raises concerns about its negative impact on Taiwan's semiconductor industry, particularly for foundries like TSMC, UMC, and Vanguard [1] - A report indicates that for every 1% increase in the NTD, the gross margin of foundries typically decreases by 0.3% to 0.5%, suggesting a potential 3% to 5% hit to profit margins due to a 10% rise in the NTD since early Q2 [1][2] - Vanguard International Semiconductor Corporation (VIS) forecasts moderate growth for Q2, with demand for communication, industrial, and automotive semiconductors recovering [1] Group 2 - Assuming an exchange rate of 30.9 NTD to USD, VIS expects silicon wafer shipments to grow by 3% to 5% compared to the previous quarter, but gross margin is projected to decline from 30.1% in Q1 to between 27% and 29% [2] - UMC estimates that a 1% rise in the NTD will reduce its gross margin by approximately 0.4 percentage points, while World Advanced's gross margin may decrease by about 0.5 percentage points for the same rise [2][4] - TSMC predicts Q2 consolidated revenue of $28.4 to $29.2 billion, with a gross margin of 57% to 59% and an operating margin of 47% to 49%, but further appreciation of the NTD could pressure these margins [2] Group 3 - TSMC has not adjusted its guidance for Q2 or the full year in response to currency impacts and is closely monitoring exchange rate trends [3] - TSMC has requested its suppliers to submit cost reduction plans to mitigate the effects of the strong NTD [3]