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]