A：In the fourth quarter of 2024, TSMC's revenue increased by 14.3 percent compared to the previous quarter. The gross margin also rose by 1.2 percentage points to 59 percent. The company reported an overall revenue increase of 30 percent in U.S. dollars and 33.9 percent in NT, reaching 2.89 trillion NT. This growth was driven by strong demand for 3 nm and 5 nm process technologies.

A：For the first quarter of 2025, TSMC expects revenue to be between 25 billion and 25.8 billion U.S. dollars. This represents a 5.5% sequential decline or a 34.7% year-over-year increase at the midpoint. The expected gross margin is between 57% and 59%, the operating margin is between 46.5% and 48.5%, and the effective tax rate is expected to be between 16 and 17%.

A：The profitability margin in the fourth quarter increased by 120 basis points to 59% due to higher capacity utilization and productivity gains. This was partially offset by dilution from the ongoing implementation of the 3 nm technology. On the other hand, the profitability margin in the first quarter is expected to decrease by 100 basis points to 58% because of higher rent costs related to N2 and cohorts expansion, as well as the beginning of dilution from foreign fabs.

A：For the full year of 2025, TSMC expects certain factors that could impact profitability. The dilution impact from the entry ramp is expected to decrease gradually, and the utilization rate is expected to moderately increase. However, there are also expected margin dilution impacts from the overseas fab ramp-up, inflationary costs, and expenses related to N2 and N5 capacity conversion. Despite these challenges, TSMC continues to forecast a long-term growth margin of 53% and higher.

A：TSMC's capital budget for 2025 is expected to be between 38 and 42 billion U.S. dollars. 70 percent of this budget will be allocated for advanced process technologies, 10 to 20 percent for specialty technologies, and another 10 to 20 percent for advanced packaging testing, mask making, and other needs.

A：In 2025, it is predicted that the global semiconductor industry will grow by 12%, driven by strong demand for AI-related products and a rebound in other market segments. TSMC expects its annual revenue to increase by nearly 20% in US dollars, outperforming the industry average.

A：TSMC is collaborating closely with customers to strategize capacity planning and is investing in cutting-edge, specialty, and advanced packaging technologies to support their expansion. TSMC is using a disciplined and thorough capacity planning system to assess and analyze market demand, in order to decide on the appropriate capacity expansion.

A：TSMC is offering customers geographic flexibility and seeking appropriate levels of government support to maximize shareholder value. The company has a strong and longstanding relationship with the US government, receiving significant commitments and support from US customers and government entities. TSMC has also made significant progress in expanding its engineering wafer production operations.

A：The progress on TSMC's first fabrication facility in Arizona is going well. The first fab has started high-volume production in the fourth quarter using 4nm process technology and achieving a yield that is comparable to TSMC's fabs in Taiwan. TSMC is confident that the Arizona facility will maintain the same level of manufacturing quality and reliability as its facilities in Taiwan.

A：TSMC's future investment strategy in the US includes increasing its technology and packaging capabilities, as there is strong demand for their 7nm technology over the next few years. They intend to expand their 7nm production in Tainan Science Park and prepare for multiple phases of 2nm nodes in both Xinhua and Gao Xiong Science Park. Additionally, TSMC is expanding its advanced packaging facilities in Taiwan and is exploring the possibility of establishing a specialty technology factory in Europe with assistance from the European Commission and German government organizations.

A：TSMC's 2nm technology is leading the industry in energy-efficient computing, with almost all innovators partnering with TSMC. The number of new designs using the 2nm technology in the first two years is expected to be higher than both 3nm and 5nm in the same period. TSMC's 2nm technology is expected to provide full node performance and power benefits with a 10 to 15% speed improvement at the same power, or a 20% to 30% power improvement at the same speed compared to N3E. Volume production of the 2nm technology is planned for the second half of 2025 with a ramp profile similar to N3. TSMC has also introduced N2P, an extension of the N2 family, offering further performance and power benefits and supporting smartphone and SPG applications. Production of N2P is scheduled for the second half of 2026. TSMC's A16 technology includes Superpower Rail (SPR), an innovative power delivery solution, which is planned to be introduced in the second half of 2022.

A：TSMC's stance is that they do not plan to acquire fabs from IDMs (Integrated Device Manufacturers). The company's approach is to expand capacity in the US according to customer requirements and government backing, but it does not view itself as an IDM. TSMC's strategy is not about rivalry with their IDM counterparts; they view these companies as great customers and partners.

A：The company anticipates that gross margins could potentially exceed 60% in the current cycle, as stated in the guidance from CC. The difference in costs between US and overseas fabs is substantial, mainly due to higher costs in the US, including smaller scale operations, higher supply chain prices, and the fledgling stage of the ecosystem. This disparity is expected to result in an estimated 2 to 3% annual dilution impact from US fabs over the next five years.

A：The profitability of TSMC is affected by six factors every year, each playing a different role. For example, the very high utilization rates, similar to those seen in the last cycle, and higher costs in US fabs due to smaller scale, higher supply chain prices, and an early-stage ecosystem, can impact gross margins. It is expected that the US fabs will cause an additional 2 to 3% dilution to overall margins each year over the next five years.

A：TSMC has revised its long-term revenue growth forecast to nearly 20% Compound Annual Growth Rate (CAGR) starting from a high base in 2024. This growth is driven by strong demand for AI, as well as modest growth in traditional applications such as AP and smartphones. The incorporation of AI capabilities in smartphones is anticipated to boost silicon content and reduce replacement cycles, resulting in more significant growth compared to just unit growth.

A：TSMC includes HBM (High Bandwidth Memory) controllers in its definition of AI accelerators. The company is collaborating with all memory suppliers as part of its focus on logic technology. While some products have begun to be released, it is anticipated that high-volume production and significant revenue from HBM controllers will be seen in the next six months to a year.

A：The new export restrictions imposed by the US on China regarding AI-related chips are seen as manageable for TSMC, as per an initial analysis. TSMC is in the process of applying for special permits for customers who are affected, and is confident that they will be granted permission, with the exception of those specifically linked to AI. The company's main priority is to continue providing support to customers within the automotive industry and other sectors.

A：TSMC is currently developing silicon photonics and has achieved positive results. However, it is expected to take between one to 1.5 years before significant volume production can begin. TSMC is also preparing advanced packaging solutions and is confident in the progress being made to improve the CPO supply chain and facilitate future technology migration.

A：The construction of the first phase in Arizona is almost finished, and the mass production for the first fab has already begun. For phase II, the company is considering how to incorporate the second fab, with updates on construction progress and pricing strategy for US wafers. TSMC has suggested that they may charge a slightly higher price for US wafers because of the advantages of geographic flexibility.

A：The construction of Building USA has begun mass production for the first phase and is almost finished with the second phase. The facilities for the second phase are nearly completed, and the tools are expected to be moved in later this year.

A：TSMC does not give a precise number, but ensures that both ASICs and graphics cards require cutting-edge technology, and they are collaborating with AI hyperscalers. The demand is described as strong and is anticipated to be substantial in terms of AI ASICs as part of the AI demand mega trend.

A：O demanda pentru cipuri personalizate cu AI, asa cum a mentionat speaker-ul, este considerata a fi "voice drunk", ceea ce reprezinta o afirmatie puternica a realitatii sale. The demand for AI custom chips as mentioned by the speaker is considered to be "voice drunk", which is a strong affirmation of its reality.

A：TSMC has not altered its long-term gross margin target despite various factors affecting profitability each year. These factors include a 2 to 3 percentage point impact from international expansion over the next five years, as well as uncertainty in the macroeconomic environment that could affect the global economy and demand in end markets.

A：While TSMC is currently focused on AI and may not be able to meet all customer demands, the adoption of some products using a collaborative approach is expected to occur and is projected to make use of TSMC's capacity in the future.

A：TSMC is working towards maintaining high production efficiency and reducing expenses. They are continually enhancing cost efficiency in both Taiwan and the United States, and are exploring new approaches to narrow the cost disparity between the two locations.

A：While TSMC does not specify how much of the 2 to 3% margin dilution is due to variable costs versus fixed costs, they admit that both types of costs are higher than the 2 to 3% figure.

A：TSMC's forecast for the semiconductor industry predicts growth, especially in the Foundry 2.0 sector which is expected to grow by 10% year-over-year. They anticipate growth in the memory business this year, specifically with HBF growing rapidly. However, they do not consider other types of memory as they are not logic devices.

A：Foundry 2.0 cannot be used as a direct proxy for semiconductor memory growth because TSMC does not provide a specific forecast for memory. However, it is expected that the memory business will grow this year.

A：TSMC ensures that they are putting in a lot of effort to meet customer demand, and there will be no reduction in orders. They are continuously increasing their production capacity and are dedicated to improving the cobot ramp.

A：TSMC does not specifically mention that HBM is limiting demand for AI, but they are focused on meeting customer needs and anticipate ongoing capacity growth, rejecting the idea of cutting orders.

A：TSMC's current focus for SOIC is primarily on AI applications for PCs and other areas, but not yet for smartphones.

A：La expectativa es que la demanda de inteligencia artificial se triplique para el año 2025 y que se duplique nuevamente a partir de esa cantidad en 2025. TSMC tiene como objetivo ofrecer suficiente capacidad para respaldar este crecimiento y tiene una expectativa de crecimiento a largo plazo de alrededor del 40%.

A：The increase in demand for AI is projected to be high this year but may slow temporarily before increasing again. It is recognized that accurately predicting the exact path of growth is challenging, especially for the year 2026, as it is too early to make precise forecasts.

A：Although specific details are not provided, it is mentioned that High-Growth Initiatives (HGI) could potentially lead to a 5% to 10% increase in die size for the first generation product. This increase is expected to be sustainable moving forward, rather than a one-time event. It is unclear if customers are beginning to adopt HGI products for the second half of the year as this question was not directly addressed.

A：It is anticipated that Edge AI will result in a 5% to 10% increase in the size of the chip for the initial generation product. This increase is expected to be ongoing rather than a one-time occurrence. The transition to Edge AI technology is seen as advantageous for TSMC, and it is believed that the replacement cycle will be shortened because of the integration of AI capabilities in devices.

A：El empaque avanzado representó más del 8% de los ingresos el año pasado y se espera que represente más del 10% este año. Los márgenes brutos para el empaque avanzado son mejores que antes pero aún están por debajo del promedio corporativo.

A：TSMC sees IDM outsourcing as part of its long-term growth strategy. They do not see themselves as competitors with TSMC, but rather as partners, and anticipate a continued long-term relationship.