Core Insights - TSMC is considering a price increase of 5% to 10% for all high-end process technologies in 2026 to offset U.S. tariffs, currency fluctuations, and supply chain cost pressures [1] - The higher pricing has been communicated to TSMC's foundry partners, affecting major customers like Nvidia and Apple who will face increased chip costs [1] - TSMC is also advancing its technology by planning to build a new 1.4nm advanced process plant, with an expected investment of 1.2 to 1.5 trillion New Taiwan Dollars (approximately 279.64 to 349.55 billion RMB) [3] Pricing Strategy - TSMC's potential price hike is a strategic response to external economic pressures, indicating a proactive approach to maintaining profitability [1] - The company has already informed its partners about the upcoming price adjustments, which will impact key clients in the semiconductor industry [1] Technological Advancements - TSMC is committed to advancing its manufacturing capabilities, with plans to start construction on a 1.4nm process plant in October 2023 [3] - The first two factories are expected to begin mass production by 2028, with future plans to progress to 1nm technology [3]

Group 1 - The core viewpoint indicates that the impact of U.S. tariffs is leading to a conservative consumer outlook for the second half of the year, with expectations that demand for terminal products like PCs and smartphones during the year-end holiday season may not meet expectations [1] - TSMC's orders related to consumer applications are weakening, and there are concerns that TSMC's revenue in Q4 may decline from the historical high in Q3, marking the first time in nearly a decade that Q4 performance may not exceed Q3 [1] - Approximately 40% of TSMC's terminal applications are in the consumer sector, which is being affected by tariffs and economic changes, leading to a slowdown in growth for the peak season in Q4, although it is still expected to outperform the same period last year [1] Group 2 - TSMC's revenue in the first half of the year increased by about 40% year-on-year, with Q4 revenue estimated to be between $31.8 billion and $33 billion, averaging $32.4 billion, indicating a quarter-on-quarter decline despite being better than the same period last year [2] - The estimated decline in Q4 revenue is projected to be in the high single to mid-double digit percentage range compared to Q3 [2]