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TSMC to charge premium for making chips outside of Taiwan, including its US fabs

Due to higher costs of power, labor, and materials.

In the recent years, TSMC has radically changed its strategy of making chips only in Taiwan and initiated expansion overseas. The company even had to delay production start at its Fab 21 near Phoenix, Arizona, due to problems with tools installation and negotiations with trade unions. Due to higher construction and operational expenses of fabs in Japan, Germany, and the U.S., TSMC plans to transfer these additional costs to its customers to sustain its target gross margin of 53%.

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