TSMC's operating margin has rebounded to pre-pandemic levels, reflecting strong cost controls and high capacity utilization, though overseas expansion (U.S., Japan, Europe) may pressure margins in coming years as manufacturing costs rise outside Taiwan[1][2]. The company's technological leadership and dominant market share continue to support premium pricing, while surging AI chip demand is driving revenue growth and justifying massive capital investments, including a new $49 billion fab in Taichung[1][3]. Today's modest stock gain (+0.89% to $297.70) aligns with broader market sentiment and reflects ongoing confidence in TSMC's strategic positioning, rather than a reaction to a specific major announcement[provided price context].
TSMC Margins Recover to Pre-Pandemic Levels Amid Global Expansion and AI Demand Surge
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