TAIPEI (TVBS News) — The world's most valuable semiconductor company has firmly dismissed speculation about potential collaboration with its American rival. Taiwan Semiconductor Manufacturing Company (TSMC, 台積電) Chairman C.C. Wei (魏哲家) categorically rejected rumors Thursday (April 17) of a joint venture with Intel during the company's first-quarter earnings conference call, emphasizing that no discussions have occurred regarding joint ventures, technology transfers, or sharing arrangements with other firms.
The chairman detailed an ambitious expansion strategy for TSMC's American operations, revealing plans for six advanced manufacturing facilities in Arizona that will eventually represent 30% of the company's global capacity for cutting-edge chips smaller than 2 nanometers. Wei noted that construction of the second Arizona fabrication plant is progressing ahead of schedule by at least six months. The third facility will focus on sophisticated 2-nanometer and A16 process technologies. Despite this progress, persistent challenges with workforce availability and regulatory approvals have prevented the company from establishing firm completion dates.
The semiconductor manufacturer's substantial investment in Arizona facilities directly addresses growing artificial intelligence requirements from major technology clients including AMD, Apple, Nvidia, Qualcomm, and Broadcom. During the earnings call, Finance and Chief Financial Officer Wendell Huang (黃仁昭) explained that expanding operations at the Arizona manufacturing complex would enhance TSMC's overall cost efficiency. This strategic scaling is expected to help maintain the company's long-term gross margin above 53%, despite initial higher operating costs in the United States.
Looking at near-term financial projections, Huang forecast second-quarter gross margins between 57% and 59%, representing a modest decline of 0.8 percentage points compared to first-quarter results. The CFO acknowledged that international manufacturing facilities would initially reduce gross margins by approximately 2 to 3 percentage points during their first five years of operation. This impact is expected to increase to 3 to 4 percentage points in subsequent years. Despite these margin pressures, Huang expressed optimism about the company's geographic manufacturing diversification strategy, noting that clients value this approach and describing the overall situation as positive. ★
