Core Viewpoint - Major U.S. companies like Apple, AMD, NVIDIA, and Broadcom are increasingly relying on TSMC for advanced semiconductor manufacturing, particularly in response to growing demand for AI-related technologies and products [1][2] Group 1: TSMC's Expansion Plans - TSMC is accelerating the production timeline for its Arizona facilities, with the first factory now expected to begin mass production of 4nm chips in Q4 2024, ahead of the original 2025 schedule [1] - The second factory, initially set for 2028, is now targeted for production in early 2027 or possibly within 2026 [1] - The third factory is anticipated to start production of N2 and A16 processes by around 2028, which is at least four quarters earlier than planned [1] Group 2: Client Demand and Partnerships - NVIDIA's CEO recently visited TSMC to discuss the production of the next-generation Rubin platform, which includes six confirmed product designs [1] - AI giants like OpenAI are also rapidly increasing their demand for TSMC's advanced manufacturing capabilities, collaborating with major clients such as Broadcom and Marvell [2] - Intel, despite receiving government investment, is still outsourcing more orders to TSMC due to its own production capacity limitations [2] Group 3: Financial Implications - TSMC has acknowledged that the ramp-up of overseas wafer fabs will dilute its gross margin starting in 2025, with an initial impact of about 2% to 3% per year, increasing to 3% to 4% in later years [2] - The support from U.S. clients is crucial for the rapid growth and profitability of TSMC's new facilities in the U.S. [2] - TSMC plans to mitigate margin pressures by expanding operations in Arizona and improving cost structures while maintaining close collaboration with clients and suppliers [2]

Core Viewpoint - TSMC (2330) is expected to face a decline in revenue in Q4 compared to Q3 for the first time in nearly a decade, despite actively pursuing growth opportunities in the U.S. semiconductor market [1][2] Group 1: Revenue and Production Outlook - TSMC anticipates that Q4 revenue in New Taiwan Dollars and U.S. Dollars may not surpass Q3 levels, marking a significant seasonal decline [1] - The first wafer fab in Arizona is set to begin mass production using 4nm technology in Q4 2024, achieving yield rates comparable to those in Taiwan [1] - The second wafer fab, utilizing 3nm technology, has been completed, with strong interest from advanced process customers, prompting TSMC to accelerate production timelines [1] Group 2: Investment and Expansion Plans - TSMC has committed to investing a total of $165 billion in advanced semiconductor manufacturing in the U.S., including six wafer fabs, two advanced packaging facilities, and a major R&D center [1][2] - Approximately 30% of the advanced process capacity below 2nm is expected to be produced in Arizona, supporting major U.S. clients such as Apple, NVIDIA, AMD, Qualcomm, and Broadcom [1] - The fourth wafer fab in Arizona will utilize N2 and A16 process technologies, with the fifth and sixth fabs planned to adopt even more advanced technologies, contingent on customer demand [2]