台積電_2026-10-15
校正紀錄
本檔為 AI 語音轉寫，落地前已校正下列轉寫誤植；未列出者為原文。數字以公司官方新聞稿（3Q26 營收 US$46.72bn、NT$1.49 兆、GM 66.4%、EPS 29.43 元、4Q26 指引 US$52.3–54.3bn）及同場券商法說紀錄交叉驗證。 - 量綱：Memo 區塊「46.7 億美元」→ US$46.7bn（467 億美元）；「52.3 至 54.3 億美元」→ US$52.3–54.3bn（523–543 億美元）；「資本支出 60-64 億美元」→ US$60–64bn（600–640 億美元）。逐字稿英文原文（billion）無誤，錯在中文摘要的單位換算。 - 年份：Memo 區塊「2027 年與 ASML 合作建立 12 吋光罩」→ 2031 年前（逐字稿原話 by 2031）。 - 產能座數：CEO「near 25 worldwide in progress」→ nearly 20 fabs worldwide（台灣約 13 座先進製程與先進封裝廠、海外 5–6 座，與同場券商紀錄一致；逐字稿此處「several」為口語、13 座數字依券商紀錄）。 - authentic AI → agentic AI（2 處）；fully year → full year（2 處）。 - High-end EUV／High-end AI／High-End → High-NA EUV／High-NA（5 處，同音誤植）。 - kager → CAGR（2 處）；K-PAKs／kickback → CapEx（4 處，UBS 提問）；kpegs → CapEx（CSP CapEx）。 - IBM → IDM；DSM-C → TSMC；JASM or TSMC → JASM or ESMC；the data fab project → the TerraFab project（前後文 TerraFab）。 - tour moving → tool move-in；second file → second fab；processing well → progressing well；assessors demand → assessed demand；standing at an unprecedented pace → moving at an unprecedented pace。 - MIBTE → EMIB-T；a corpus → a CoPoS；the residual size → the reticle size；real-world production → volume production（5X reticle 量產）。 - 人名：Chris→Krish（TD Cowen，6 處）、Google／Goku→Gokul（JPMorgan，3 處）、Citi, Wendell→C.C., Wendell、thanks, Jess→Jeff、signing in UBS→Sunny Lin, UBS（UBS 林莉鈞）。 - The NG amount → The amount（mask licensing 金額很小）。 - the true price inflation → the tool price inflation。 - our customers are customers who plan for our capacity → our customers' customers, who plan for our capacity（依券商紀錄「客戶的客戶」）。 - the middle height is 50 gross → the mid-to-high-50s growth（指 AI 加速器 CAGR）。 - 標 [待確認]：Charlie Chan 提問中「W3.5D」，疑為 CoWoS 相關先進封裝名稱，無法判定。 - 未修（原文保留）：Citi 提問後 AI CAGR 回答處「whether is high fi／fty kit」為斷句殘缺，語意為「無論是高 50% 或其他幅度都不重要，數字可能更高」；部分提問處講者標籤與內容錯位（IR 轉述與分析師發言交錯），依原樣。 - 刪除站方宣傳句與 AI 警語。
Memo 亮點 - 2026 年第三季營收以新台幣計算季增 17.6%，以美元計算季增 16.2% 至 US$46.7bn（467 億美元），超出財測高標。全年 2026 年營收預期年增約 44%（以美元計）。第四季營收預估為 US$52.3–54.3bn（523–543 億美元），季增 14%，年增 58%（以 2026-10-15 為基準推算）。 [CFO - 00:01:55] [CEO - 00:12:01] [CFO - 00:05:48] - 兩奈米製程於 2026 年第三季貢獻 8% 晶圓營收，三奈米、五奈米、七奈米分別佔 33%、28%、10%。先進製程（七奈米及以下）合計佔 79%。 [CFO - 00:03:13] - AI 相關需求極為強勁，AI 加速器 2024-2029 年 CAGR 預估維持中高 50% 區間，且未見放緩跡象。 [CEO - 00:25:14] - 2026 年全年資本支出預估維持 US$60–64bn（600–640 億美元），並預期 2026-2028 年資本支出將顯著高於過去三年。 [CFO - 00:09:17] - 海外廠房毛利率稀釋 2026 年預估約 2%，未來數年將擴大至 3-4%。 [CFO - 00:07:30] [CFO - 00:07:57] 總體經濟 - 消費性及價格敏感終端市場因零組件價格上升及總體經濟不確定性而面臨挑戰，公司對 2027 年業務規劃持審慎態度。 [CEO - 00:11:10] 產業循環週期 - AI 帶動的半導體產業結構性需求持續強勁，產業進入多年度成長週期。 [CEO - 00:13:16] 產業供需 - AI 相關晶片需求遠高於供給，供需缺口仍大，公司正全力提升產能以縮小差距。 [CEO - 00:23:52] [CEO - 00:29:48] 產業狀況 - AI 市場需求強勁，開放原始碼 AI 模型普及推動 AI 應用門檻降低，帶動先進製程需求。 [CEO - 00:12:23] 獲利 - 2026 年第三季 EPS 為 29.43 元新台幣，ROE 為 45.5%。毛利率季減 1.3 個百分點至 66.4%，主因兩奈米量產初期稀釋。 [CFO - 00:02:47] [CFO - 00:06:37] - 預期 2026 年第四季毛利率中值為 66%，季減 0.4 個百分點，主因兩奈米及海外廠房稀釋，部分由成本改善抵銷。 [CFO - 00:07:04] 公司展望、未來成長動能 - 預期 2026 年全年營收年增約 44%（美元計），AI 長期需求展望正向，兩奈米及 A14 製程將成未來成長主力。 [CEO - 00:12:01] [CEO - 00:17:19] - 公司持續加速全球產能擴張，預計 2027 年 N2 產能將倍增，A14 製程 2027 年試產、2028 年量產。 [CEO - 00:16:49] 市場競爭策略 - 對於 High-NA EUV 採用時程，公司強調將於 2030 年導入，並不認為晚於競爭對手會造成技術領先劣勢，強調成熟度與成本效益為首要考量。 [CEO - 00:38:02] - 先進封裝（CoWoS）5X reticle 尺寸量產且良率優異，9X、14X 尺寸開發中，強調在先進封裝領域具領先地位。 [CEO - 00:45:14] 營收 - 2026 年第三季營收 US$46.7bn（467 億美元），季增 16.2%，高於財測高標。預估 2026 年第四季營收 US$52.3–54.3bn（523–543 億美元），季增 14%，年增 58%（以 2026-10-15 為基準推算）。 [CFO - 00:02:22] [CFO - 00:05:48] 產品組合 - 2026 年第三季 HPC 平台營收季增 22% 佔 68%，智慧型手機季增 10% 佔 21%，IoT 季增 5% 佔 4%，車用季增 23% 佔 4%，DCE 季減 12% 佔 1%。 [CFO - 00:03:42] 上游廠商 - 設備供應商產能緊張，公司與供應商提前協調以確保產能，工具價格上漲對資本支出有實質影響。 [CFO - 00:09:45] [CFO - 00:49:55] 下游客戶 - AI 相關客戶需求極為強勁，客戶多為美國大型企業，並積極要求台積電擴產。公司與客戶密切合作，提前規劃產能。 [CEO - 00:33:18] 同業 - 針對 IDM 競爭者積極資本支出，公司表示 A14 節點客戶數量與活動高於 N2，強調不評論單一客戶，但會綜合考量競爭者自有產能。 [CEO - 00:41:30] 稼動率 - 公司正加速全球產能擴張，預計 2027 年 N2 產能倍增，並於台灣、亞利桑那、日本等地新建多座先進製程廠房。 [CEO - 00:16:49] [CEO - 00:17:50] 存貨庫存 - 2026 年第三季存貨天數降至 82 天，季減 5 天，主因晶圓出貨增加。 [CFO - 00:04:43] 新產品／新技術 - N2 家族技術 2027 年產能將倍增，A14 製程 2027 年試產、2028 年量產。先進封裝（CoWoS）5X reticle 尺寸量產，9X、14X 開發中。 [CEO - 00:16:49] [CEO - 00:45:14] - High-NA EUV 預計 2030 年導入，2031 年前與 ASML 合作建立 12 吋光罩，強調成熟度與成本效益。 [CEO - 00:38:24] 產品價格 - 針對價格調漲，公司表示策略性調整，依市場區隔、地點、技術而定，美國生產價格與台灣不同，會爭取技術價值最大化。 [CEO - 01:03:55] 政府補貼 - 美國政府對公司在美擴產提供協助。 [CEO - 00:33:18] 成本毛利 - 2026 年第三季毛利率 66.4%，季減 1.3 個百分點，主因兩奈米初期稀釋。海外廠房毛利率稀釋 2026 年預估約 2%，未來數年擴大至 3-4%。 [CFO - 00:06:37] - 工具、材料、人工成本上升，對資本支出與成本結構有實質影響。 [CFO - 00:49:55] 匯率 - 2026 年第四季財測假設匯率為 1 美元兌 31.8 元新台幣。 [CFO - 00:06:10] 銷售／管理／研發費用 - 2026 年第三季營業費用佔淨營收 7.8%。 [CFO - 00:02:47] 擴廠規劃 - 全球產能擴張加速，台灣、亞利桑那、日本等地新建多座先進製程廠房，並評估德州新廠可能性。 [CEO - 00:17:50] [CEO - 00:33:48] 營業利益 - 2026 年第三季營業利益率為 58.7%。 [CFO - 00:02:47] 股利政策 - 公司承諾持續穩定且逐年增加現金股利，包含年度與季度現金股利。 [CEO - 00:10:14] 現金、現金流 - 2026 年第三季現金及有價證券餘額 4 兆新台幣（1260 億美元），單季營運現金流 9200 億新台幣，資本支出 4430 億，發放 1560 億現金股利，現金餘額季增 4880 億至 3.6 兆新台幣。 [CFO - 00:04:13] 併購 - 與 GlobalFoundries 合作矽中介層（interposer）供應，強調以客戶成功為首要，補足後段產能短缺。 [CEO - 01:05:43] 長短期借款 - 2026 年第三季流動負債季增 1100 億新台幣，主因債券及銀行借款現流動部分增加 460 億，應付股利增加 260 億。 [CFO - 00:04:13] 應收帳款 - 2026 年第三季應收帳款週轉天數降至 28 天，季減 1 天。 [CFO - 00:04:43] Transcript Presentation 蘇志凱 - 台積電, Investor Relation
(00:00:00)大家午安，我是台積電法人關係處的蘇志凱，歡迎您參加台積電公司 2026 年第三季的法人說明會。由於本法說會是向全球投資人同時連線轉播，所以我們會全程使用英文，請您見諒。Good afternoon everyone, and welcome to TSMC's third quarter 2026 earnings conference call. This is Jeff Su, TSMC's Director of Investor Relations and your host for today. TSMC is hosting our earnings conference call via live audio webcast through the company's website at www.tsmc.com.
蘇志凱 - 台積電, Investor Relation
(00:00:43)Where you can also download the earnings release materials. If you are joining us through the conference call, your dial-in lines are in listen-only mode. The format for today's event will be as follows. First, TSMC's Senior Vice President and CFO, Mr. Wendell Huang, will summarize our operations in the third quarter, 2026, followed by our guidance for the fourth quarter, 2026.Then, Mr. Huang and TSMC's Chairman and CEO, Dr. C.C. Wei, will jointly provide the company's key messages. That will be followed by the Q&A session.
蘇志凱 - 台積電, Investor Relation
(00:01:25)As usual, I would like to remind everybody that today's discussions may contain forward-looking statements that are subject to significant risks and uncertainties which could cause the actual results to differ materially from those contained in the forward-looking statements. Please refer to the safe harbor notice that appears in our press release. And now, I would like to turn the call over to TSMC's CFO, Mr. Wendell
黃仁昭 - 台積電, CFO
(00:01:53)Huang, for the summary of operations and the current quarter guidance. Thank you, Jeff. Good afternoon, everyone.Thank you for joining us today. My presentation will start with financial highlights for the third quarter of 2026. After that, I will provide the guidance for the fourth quarter of 2026. Third quarter revenue increased 17.6 percent sequentially in NT, supported by strong demand for our leading edge process technologies.
黃仁昭 - 台積電, CFO
(00:02:22)In US dollar terms, revenue increased 16.2 percent sequentially to 46.7 billion, above the high end of our third quarter guidance. Gross margin decreased by 1.3 percentage points sequentially to 66.4 percent, primarily due to margin dilution from two nanometer ramp.Total operating expenses accounted for 7.8 percent of net revenue, operating margin was 58.7 percent. Overall, our third quarter EPS reached 29.43 NT and ROE was 45.5 percent. Now, let's move on to revenue by technology.
黃仁昭 - 台積電, CFO
(00:03:13)Two nanometer process technology contributed eight percent of wafer revenue in the third quarter, while three nanometer, five nanometer, and seven nanometer accounted for thirty-three percent, twenty-eight percent, and ten percent respectively. Advanced technologies, defined as seven nanometer and below, accounted for seventy-nine percent of wafer revenue.
黃仁昭 - 台積電, CFO
(00:03:42)Moving on to revenue contribution by platform, HPC increased 22 percent quarter over quarter to account for 68 percent of our third quarter revenue. Smartphone increased 10 percent to account for 21 percent, IoT increased 5 percent to account for 4 percent, automotive increased 23 percent to account for 4 percent, while DCE declined 12 percent to account for 1 percent.
黃仁昭 - 台積電, CFO
(00:04:13)Moving on to the balance sheet, we ended the third quarter with cash and marketable securities of 4 trillion NT or 126 billion US dollars. On the liability side, current liability increased by 110 billion NT quarter over quarter, mainly due to the increase of 46 billion in current portions of bond payable and bank loans and 26 billion in dividend payable.In terms of financial ratios, accounts receivable turnover days decreased by one day to twenty-eight days, inventory days decreased by five days to eighty-two days primarily due to the increase in wafer shipment. Regarding cash flow and CapEx, during the third quarter, we generated about nine hundred and twenty billion NT dollars.
黃仁昭 - 台積電, CFO
(00:05:10)In cash from operations, spent 443 billion in CapEx and distributed 156 billion for fourth quarter 2025 cash dividends. Overall, our cash balance increased 488 billion NT to 3.6 trillion at the end of the quarter.In US dollar terms, our third quarter capital expenditures total 13.8 billion. I have finished my financial summary, now let's turn to our current quarter guidance.Based on the current business outlook, we expect our fourth quarter revenue to be between 52.3 and 54.3 billion US dollars, which represents a 14 percent sequential increase or a 58 percent year-over-year increase at the midpoint.
黃仁昭 - 台積電, CFO
(00:06:10)Based on the exchange rate assumption of one US dollar to 31.8 NT, gross margin is expected to be between 65 and 67 percent, operating margin between 56.5 and 58.5 percent. This concludes my financial presentation. Now, let me turn to our key messages.I will start by talking about our third quarter 26 and fourth quarter of 26 profitability. Compared to second quarter, our third quarter gross margin decreased by 130 basis points sequentially to 66.4 percent, primarily due to the margin dilution from the initial ramp up of our two nanometer technology.
黃仁昭 - 台積電, CFO
(00:07:04)We have just guided our fourth quarter gross margin to decrease by forty basis points to sixty-six percent at the midpoint, primarily due to the continued margin dilution from the steep ramp up of our two nanometer technology, as well as dilution from overseas fabs. These impacts are expected to be partially offset by cost improvement efforts,including productivity gains and across node capacity optimization. While the cost of overseas fabs remain higher, thanks to the company's overall larger scale and cost improvement efforts, we now expect the gross margin dilution from the ramp up of our overseas fabs to be closer to two percent for the full year 2026.
黃仁昭 - 台積電, CFO
(00:07:57)As we put more effort to support the strong structural demand from our customers, more fabs will be ramping up in the US. Thus, we expect the dilution from our overseas fabs to widen to three to four percent in the next few years. We will leverage our increasing size in Arizona and work on our operations to improve the cost structure.We will also continue to work closely with our customers and suppliers to manage the impact. Overall, with our fundamental competitive advantages of manufacturing technology leadership and large-scale production base, we are confident that TSMC continues to be the most cost-efficient manufacturer in every region that we operate.
黃仁昭 - 台積電, CFO
(00:08:51)Next, let me make some comments on our 2026 capital budget. At TSMC, our higher level of capital expenditure is always correlated with higher growth opportunities in the following years. Given the continued robust multi-year demand from our customers, including the emerging agentic AI market,we reiterate our full year 2026 capital budget to be between 60 and 64 billion US dollars. We continue to expect our CapEx dollars investment from 2026 to 2028 to be even more significantly higher than the past three years as we continue to invest heavily to support our customers' growth. Additionally,
黃仁昭 - 台積電, CFO
(00:09:45)while the tool supply is tight, we always collaborate closely with our tool suppliers well in advance to prepare the capacity, just like our customers collaborate with us well in advance to plan our capacity. Even as we invest for the future growth with this level of CapEx spending in the next few years, we remain committed to delivering profitable growth to our shareholders.
魏哲家 - 台積電, CEO
(00:10:14)We also remain committed to a sustainable and steadily increasing cash dividend per share on both an annual and quarterly basis. Now let me turn the microphone over to C.C. Thank you, Wendell. Good afternoon, everyone. First, let me start with our near-term demand outlook. We concluded our third quarter with a revenue of US $46.7 billion.Higher than our guidance in US dollar terms driven by strong demand for our leading edge process technologies. Moving into fourth quarter 2026, we expect our business to be supported by continued strong demand for our leading edge process technologies including the steep ramp up of our two nanometer technology. Looking ahead,
魏哲家 - 台積電, CEO
(00:11:10)we continue to observe consumer and price-sensitive end market segments are being challenged due to the impact of rising component prices and macroeconomic uncertainties. As such, we are being prudent in our business planning going into 2027.While focusing on the fundamentals of our business to further strengthen our competitive position. Having said that, demand for our leading edge technologies continue to be extremely robust, supported by our strong technology differentiation and broad customer base. Therefore, we now expect our full year 2026 revenue growth
魏哲家 - 台積電, CEO
(00:12:01)to be around 44 percent year over year in US dollar terms. Next, let me talk about the AI-related demand outlook. The AI market continues to be very strong. Recent developments are very positive to AI's long-term demand outlook.We observe increasing AI demand fueled by the rising adoption of agentic AI as we transition from chatbot to AI assistants. In addition, we are observing great adoption of open source AI models. This will drive greater efficiency and help lower the barrier to future AI usage.
魏哲家 - 台積電, CEO
(00:12:49)And result in more and more demand for leading edge silicon. Thus, AI-related demand is being supported by strong underlying demand for AI accelerators. In addition, the emergence of agentic AI CPUs and the continued demand for networking chips are driving further silicon demand.Therefore, semiconductors will remain essential in the AI megatrend. The value of semiconductors in the global supply chain is set to continue to increase in our view. This will create more value opportunities for our customers to capture and more value opportunities for TSMC as well.
魏哲家 - 台積電, CEO
(00:13:42)No matter which approach is taken, it will require use of the most advanced semiconductor process technology. With our technology leadership, manufacturing excellence, global capacity expansion, and customer trust, we are well positioned to capture the full multi-year structural AI-related demand.Therefore, all the AI players are working with TSMC. Next, let me talk about TSMC's capacity expansion strategy. As a foundry, our first responsibility is to provide our customers with the best technologies and effective capacity support to unleash their innovations.
魏哲家 - 台積電, CEO
(00:14:35)To address the structural increase in the long-term semiconductor market demand profile, TSMC collaborated closely with our customers, and our customers' customers, who plan for our capacity. In addition, we are now going one step further and sending our own teams of people to check on the data center build-out process progress.And power supply situation in the US. The feedback is so far so good and the CSP has been well prepared. Internally, TSMC employed a disciplined capacity planning system to assess market demand from both a top-down and bottom-up approach. This is a continuous and ongoing process.
魏哲家 - 台積電, CEO
(00:15:31)Given the fundamental complexity of leading edge technologies and the designing and lead time involved, we already have a very good idea of customers' multi-year product roadmap and production plans. Thus, we continue to hold strong conviction in the AI megatrend. We are moving full speed ahead to increase our capacityto meet our assessed demand and stepping up our CapEx investment to support our customers' future growth. TSMC is moving at an unprecedented pace with nearly 20 fabs worldwide in progress. We are building certain leading edge
魏哲家 - 台積電, CEO
(00:16:21)and advanced packaging fab in Taiwan over the next several years and another five to six fabs overseas. Our new node N2 has already entered high volume manufacturing in the fourth quarter of 2025, which good year, N2 is ramping successfully in multiple phases at both Hsinchu and Kaohsiung side.We expect our N2 family technology's annual capacity to more than double in 2027, supported by strong demand from both smartphone and HPC AI applications. We are also leveraging our manufacturing excellence to generate more N2 wafer output, further increasing our capacity support to customers. In addition, we have already begun
魏哲家 - 台積電, CEO
(00:17:19)preparing the capacity for our A14 technology, risk production is well on track for 2027 and volume production will start in 2028. Thus, TSMC's semiconductor technologies and manufacturing will continue to play a pivotal role in supporting the global semiconductor industry while unleashing our customers' innovation.Now, let me talk about TSMC's global N3 capacity expansion update. As we said before, historically we do not add additional capacity to a node once it reaches its target capacity. However, based on our assessment, we are executing well on our global capacity plan to add three new fabs.
魏哲家 - 台積電, CEO
(00:18:17)To support the robust multi-year pipeline demand for 3nm technologies. In Taiwan, volume production for our new 3nm fab in Tainan Science Park is well on track to begin the first half of 2027.In addition, driven by the strong demand from our customers, we have decided to add one additional three nanometer fab in Tainan. Volume production is scheduled for the first half of 2028. In Arizona, we have completed the construction of our second fab and are in the process of tool move-in and installation. Volume production will begin in third quarter twenty-seven.
魏哲家 - 台積電, CEO
(00:19:08)Slightly ahead of our previous schedule. In Japan, we are progressing well to our plan to utilize 3 nanometer in our second fab and volume production is scheduled in 2028. In addition to all the new files, we continue to convert 5 nanometer tool to support 3 nanometer capacity in Taiwan.We are also leveraging our manufacturing excellence to greater productivity across our fab in all locations. To generate more wafer output, we are also focusing on capacity optimization across nodes, which include flexible capacity support among N7, N5 and N3 nodes. Thus,
魏哲家 - 台積電, CEO
(00:20:05)we are using multiple levels to do everything we can, whenever we can, as fast as we can to maximize the support to our customers. We have no intention to leave food on the table for others, and we want to capture every piece of business possible. This concludes our key message and thank you for your attention.
蘇志凱 - 台積電, Investor Relation
(00:20:32)Thank you, C.C. This concludes our prepared statements. Before we begin the question and answer session, I would like to remind everybody to please limit your questions to two at a time to allow as many participants as possible the opportunity to ask their questions. Should you wish to raise your question in Chinese, I will translate it to English before our management answers your question.For those of you on the call, if you would like to ask a question, please press the star then one on your telephone keypad now. If at any time you'd like to remove yourself from the questioning queue, please press star two. Now
Speaker01 - Operator
(00:21:19)Let's begin the Q&A session. Operator, may we proceed with the first caller on the line, please？ Yes, first one, Laura Chen from Citi. Go ahead, please.
Q&A 陳佳儀 - 花旗, Analyst
(00:21:25)Thank you very much. Good afternoon, and I appreciate C.C. for sharing with us TSMC's capacity expansion strategy. May I follow up on that？ Given the increasing aggressive AI semiconductor demand, how does TSMC now see the AI revenue category growth？And how does TSMC reconcile customers' capacity requirements with some potential concerns on data center power availability and also maybe funding recently, as well as other critical components such as HBM, advanced packaging, and also on the networking side where we see tightness of lasers as well？ So if these constraints create a mismatch,
陳佳儀 - 花旗, Analyst
(00:22:16)between semiconductor supply and actual AI development, how would TSMC adjust your capacity allocation and strategy to minimize the potential overbuilding in the supply chain？Thank you, that's my first question.
蘇志凱 - 台積電, Investor Relation
(00:22:33)OK, Laura. Laura has a very involved first question. I think she's asking how we see the AI demand outlook. The AI demand, as C.C. said, seems to be very strong, but she's worried or concerned about how we reconcile the strong demand for AI chips versus risks related to power supply.You know, I think also like
魏哲家 - 台積電, CEO
(00:23:15)different bottlenecks within the supply chain, etc. How do we make our assessment of what is the appropriate CapEx and capacity we need to prepare？Is that correct, Laura？ Yes, thank you. That's a long question.Laura, let me share with you. We have a very sophisticatedcapacity planning process, and we also have a very disciplined approach on our consideration. Let me share with you： we put every possibility on the table. If we talk about the CSPs' CapEx, data center build-out, financial
魏哲家 - 台積電, CEO
(00:23:52)power supply and also other component supply, etc., into our consideration. So we make our own judgment, and then based on our assessed demand, we still think the demand is higher than the supply, and we are working very hard to narrow the gap.
陳佳儀 - 花旗, Analyst
(00:24:21)Did I answer your question, Laura？ Sure, thank you, thank you very much. So far, from our comprehensive study in the supply chain, we are still quite positive on the demand in the longer term, right？ So in that case, can you also give us more color about any update on your AI category growth？ I recall previously we talked about a high 50 percent
蘇志凱 - 台積電, Investor Relation
(00:24:51)Sorry, sorry, yeah, so part of Laura's question is then based on our assessment we had previously
魏哲家 - 台積電, CEO
(00:25:14)guided our AI CAGR, AI accelerator CAGR, which is a narrow definition, to go mid to high 50 percentage from 2024 to 2029. So Laura wants to know do we have any update to that number today？ Laura, all I can say right now is the demand is very extremely robust, okay, and we did not see any sign of slowdown whether is high fi
陳佳儀 - 花旗, Analyst
(00:25:36)fty kit doesn't matter, it probably will be higher. Sure, okay, yes, thank you very much. Yeah. And my second question is also about, given the very strong demand, the CapEx cycle we see that definitely this round will be much higher than before, and TSMC also announced that earlier you will adopt a High-NA EUV around 2030. So should we think about that will further improve the productivity, thus will be more meaningful for further acceleratingrevenue growth in the longer term and also given that the CapEx intensity are also getting much higher, so how should we think about that？
蘇志凱 - 台積電, Investor Relation
(00:26:19)The pricing power and also the long-term growth margin and the capital efficiency return. That's my second question. Thank you. Two questions, but okay, we'll just very quickly. So part of it is on the strong demand on our CapEx cycle. How do we view the adoption of High NA, which we said we will in 2030？ And then her question is on profitability long-term outlook.
魏哲家 - 台積電, CEO
(00:26:48)Thank you. Oh, okay, let me answer that question. Yes, for the longer-term productivity, we continue to improve it, and High-NA definitely is a very good tool, and so far I think our plan is to use it in 2030. Again, our CapEx will be much higher than today.And so, you talking about the gross margin or the profitability can be increased or not. Let me say that there is no ceiling for TSMC's profitability, but a dramatic increase will not happen overnight either. So our philosophy or our strategy is always working with our customer.
陳佳儀 - 花旗, Analyst
(00:27:46)And we want to make them be successful, and then we can gain our value. Thank you very helpful, appreciate, and congrats for the great result. Thank you. Thank you, operator. Can we move on to the next participant, please？ Next one, Gokul Hariharan from JPMorgan, go ahead please.
哈戈谷 - 摩根大通, Analyst
(00:28:10)Hi, good afternoon, C.C., Wendell, and Jeff.My first question again on capacity addition.Looks like the shortage situation next year could be even more than 2026.Just wanted to hear, C.C., your view on this.And I think it's been quite some time since we've seen TSMC add capacity at more than 10 percent every year.I think if you look at our annual report, I think it'd be like about ten years that you've added capacity at more than 10 percent. Given this accelerated build-out, can we start getting wafer capacity growth closer to 10 percent or even higher than 10 percent in the next couple of years？
哈戈谷 - 摩根大通, Analyst
(00:28:51)Any comment on what is your planned wafer capacity
蘇志凱 - 台積電, Investor Relation
(00:29:02)growth in the next couple of years？ That's my first question. OK, so Gokul's first question is regarding the capacity addition and the demand, so his question first is the tightness in the wafer supply, do we think that will be even more or greater in 2027 than 2026？And then along with that, how do we see our overall capacity addition？ Though you say 10%, I think every year we disclose in the annual report it's been about mid to high single digit and sometimes even lower, but anyway, regardless, those are the two questions. So first on just the demand outlook and then the supply will next year be even more tight than this year？
魏哲家 - 台積電, CEO
(00:29:48)I just mentioned the demand is extremely robust and getting higher and higher. Of course, we have our own judgment and we look at every angle. As I said, we talk to customers, customer is a customer, and then we do our own one more step to check the data centers are built out.All the result we put into our judgment and our assessment. The result is say the demand is very, very high, and so the gap between demand and supply are still quite big, and that's why we put all our strength to increase the capacity as I just mentioned.
魏哲家 - 台積電, CEO
(00:30:43)Whether is bigger or is the gap become bigger or the gap become narrow, we are working very hard. I cannot answer this question right now because my customer continue to increase their demand.
黃仁昭 - 台積電, CFO
(00:30:59)OK, Gokul, I think it's a bit too early to talk about capital capacity increase percentage going forward, but let me just remind you that the increase every year, although the number is even though the number may be small, but the increase in advanced packaging or sorry advanced nodes are really the main driver for the capacity increase. OK？
哈戈谷 - 摩根大通, Analyst
(00:31:31)Fair enough, okay, thank you.Secondly, could you, I think you alluded to more aggressive overseas expansion plans in the US, especially, and I think recently there's been a lot of discussion with potentially a new fab cluster in Texas as well, and I think one of your customers also talked about discussions with TSMC as well.So C.C.,
哈戈谷 - 摩根大通, Analyst
(00:32:02)could you talk a little bit about your overseas plans, like the more accelerated kind of capacity build-out, and also any engagement with SpaceX or Tesla given your customer did call you out last week in terms of some engagements here？ Like what are the broad contours of this kind of engagement likely to be？ Is it similar to what you've done with some of the customers in Japan and ESMC as well？
蘇志凱 - 台積電, Investor Relation
(00:32:28)OK, thank you, Gokul. So Gokul's second question he knows that C.C. said we're expanding at an unprecedented pace, doing everything we can as fast as we can to increase the capacity. So his question is particularly to the US： what is the status or update？ There's been reports that we are looking to expand in Texas. There's been reports that one of our customers we're engaging in discussions. He wants to know what kind of
魏哲家 - 台積電, CEO
(00:32:54)framework or parameters of any cooperation maybe or any comment on either of those two things. OK, Gokul. We work very hard to expand our capacity in the US. This is necessary because of all our customers, most oflarge customers in the US, and they request that TSMC increase the capacity, and also US government are very helpful. So that's a place we want to expand. So recently we did expand our capacities consideration to see outside Arizona whether we can get another chance to expand our capacity.
魏哲家 - 台積電, CEO
(00:33:48)And Texas is the one. So we send teams to Texas to do all the evaluation. And we also talk to one of our customers who try to build a fab, TerraFab, let me be more specific. And we discuss with them see whether that we can be utilizing that actual capacity also.So we're still in discussion. If
哈戈谷 - 摩根大通, Analyst
(00:34:37)we have any solid conclusion, we will share with you. But today, and that's it. Yes, from Arizona to Texas, yes. Okay, but all these are still going to be TSMC-run fabs, right？I think you're not
蘇志凱 - 台積電, Investor Relation
(00:34:43)becoming part of the TerraFab project or anything like that. Can you just help us understand what are the principles that you are using here？ Is it the similar principles that you use for JASM or ESMC？ Okay, so Gokul's question is not
魏哲家 - 台積電, CEO
(00:35:08)you know, in particular to the potential cooperation with this customer, would it be TSMC own？ What's the principles that we have if anything？ We are still in discussion. Let me say that it's not either way it would be possible, but the fact got to be run by TSMC. Understood. Thank you. All right, thank you.
Speaker01 - Operator
(00:35:34)Operator, can we move on to the next participant please？ Yes, next one Krish Sankar, TD Cowen.Go ahead please.
Krish Sankar - TD Cowen, Analyst
(00:35:40)Yeah, thanks for taking my question.I have two questions.First, C.C., some customers talk about a secondary wafer market where one customer passes their wafer allocation to another.Is this a very small portion of the business？Is it customer-specific, or do you see that as an emerging trend where customers with weak demand pass some of their allocation to stronger customers？I'm going to add a quick follow-up.
蘇志凱 - 台積電, Investor Relation
(00:36:04)All right, Krish, thank you.So Krish's first question is about some of our customers discussing a resale or secondary wafer market where they can pass their allocation on.So is this a very small portion of our business, or is this more of a trend for us to do, and is this something that we allow our customers to do？
魏哲家 - 台積電, CEO
(00:36:28)Well, let me answer that. To say whether this is a new strategy or methodology, the answer is no. The principle of TSMC is we do not allow our customers to sublet or auction off the capacity. But in certain cases, customers can collaborate through a mask licensing agreement, but this is not our common practice.
Krish Sankar - TD Cowen, Analyst
(00:36:58)The amount is very, very small. Krish, did I answer your question？ Yes, thank you very much for that, and then a quick follow-up. You touched upon the High-NA agreement with ASML from 2030 onwards. I'm just curious： historically, TSMC was more ahead of the curve with EUV adoption. It looks like by the time you adopt High-NA EUV, it will be 2030–2031.But some of your competitors would have already been using it by then. So do you see that as a disadvantage, or are you not worried about competition getting ahead with High-NA EUV？
Krish Sankar - TD Cowen, Analyst
(00:37:36)Thank you.
蘇志凱 - 台積電, Investor Relation
(00:37:36)OK, so Krish's second question is looking at High-NA. He notes some of our competitors are both using or will adopt High-NA earlier than TSMC. So his question is： does this put us at a competitive disadvantage or risk compared to our competitors in terms of technology leadership？
魏哲家 - 台積電, CEO
(00:38:02)Krish, let me answer that. We always evaluate a new tool, and if we want to put it into mass production, it has to be the best technology with a very reasonable cost, and most importantly, the best maturity.Okay, so we say in 2030, we'll start to use it because we also think that at that time, High-NA will be mature, and we're also working very closely with ASML to establish a 12-inch photomask by 2031.And at that time, we think that High-NA's cost will be
魏哲家 - 台積電, CEO
(00:38:49)reasonable for TSMC to make it into mass production. This is a very good tool. Let me emphasize that in the smaller geometry, it definitely has some advantage. Whether that is our technology, because we are using it later than our competitors, is it a disadvantage to TSMC？ No.Because we have confidence that we are still the best company to offer the most advanced technology to our customers. Krish, does that answer your question？ Thank you very much, thank you, sir. Operator, can we move on to the next participant, please？ Charlie Chan, Morgan Stanley, go ahead, please.
詹家鴻 - 摩根士丹利, Analyst
(00:39:45)Hi gentlemen, thanks for taking my question and also gathering here. Very strong AI semiconductor demand amid some recent stock market correction. So my first question is really about your leading-edge capacity expansion strategy. As far as I know, one of your IDM customers is spending CapEx very aggressively.So there are some concerns about this customer possibly insourcing more than outsourcing. First of all, I'm not sure how you're going to deal with this sort of business opportunity. Secondly, I remember last time that C.C. mentioned A14 could be a bigger node than N2. May I know whether that assumes the big IDM company will outsource more CPU-like server CPU at A14？ Thank you.
蘇志凱 - 台積電, Investor Relation
(00:40:42)OK, so Charlie's first question is around the IDM competitor. He wants to know very specifically if we see this competitor moving to insource more. So his question is： the prior comment of A14 being a larger node than N2, has even been, does this include the server CPU from this IDM competitor which
魏哲家 - 台積電, CEO
(00:41:11)Well, Charlie, we treat every customer fairly.So whether it's an IDM or is, you know, purely fabless, we treat them the same. But of course, we take into consideration their internal capacity. So we calculate our support, we calculate our capacity build-up according to our own judgment.Actually, in our A14, we have seen more and more customers actually higher than the two nanometer activities so far, and we expect that the A14 will be a bigger node than our current N2 technologies.
詹家鴻 - 摩根士丹利, Analyst
(00:42:07)I see, so it doesn't need to consider this idea. We will also outsource more. We can still have an A14 to be a bigger node than N2. Is that the right understanding？ Well, again, Charlie wants to know very specifically this customer's outsourcing plan, which you probably may need to ask them, but, you know, well, Charlie, as I said, to be frank with you, I don't comment on a specific customer.
詹家鴻 - 摩根士丹利, Analyst
(00:42:37)But let me guarantee you that we take everything into consideration. Do you have a second question for me？ Yes, I do, thanks Jeff. So the second question is kind of a follow-up about your advanced packaging. From what we're seeing, the reticle size is getting much bigger since you said last time or even two quarters ago about yourresponse, you know, so W3.5D [待確認], lots of initiatives going on. So my question is： do you think those are kind of a CoPoS？ So W3.5D [待確認] can really catch customers' very rapid development of their larger reticle size chip like 14 reticle？ And secondly, if some customer
詹家鴻 - 摩根士丹利, Analyst
(00:43:35)they initially choose to use Intel's new EMIB-T and for some reason cannot get sufficient demand. Are you okay to bail out or support customers for the cost version or capacity？Thank you.
蘇志凱 - 台積電, Investor Relation
(00:43:51)Alright, so Charlie's second question is focused on the advanced packaging. I guess Charlie, if I understand your question, to summarize, it is of course customers are moving to larger and larger reticle size, 14X, so he wants to know TSMC's roadmap and solutions and how competitive we can be against it. I think he mentioned specifically your competitors' EMIB.So how do we view our solution？
魏哲家 - 台積電, CEO
(00:44:27)Is it as competitive as our competitor？That's the first part of this question. Alright, Charlie, actually, I still think that TSMC's advanced assembly or let's say packaging technology are very, very competitive.But the most important thing is that we use that one to help our customers' product be introduced in the market smoothly. That's our number one priority. And so we have to offer them the best technology with enough capacity. So far, let me share with you today's situation. We are in the volume production of 5X reticle size.
魏哲家 - 台積電, CEO
(00:45:14)I don't believe that anybody can do that today except TSMC. And the yield is excellent. So our customers are very satisfied with the result. And then we are working on the 9X reticle size and moving into the 14X reticle size.Of course, we are also working on the CoWoS and to make sure that in the future we can offer a reasonable cost reduction. But so far, the CoWoS is still the number one choice for our customers. As time goes by,yes, our competitor offers very competitive solutions still. I want to say that today's situation, we are the only one that, you know, makes sure that the advanced packaging is a 5X reticle size and still we are very competitive. I want to emphasize that.
魏哲家 - 台積電, CEO
(00:46:23)And then Charlie's question： if the competitor cannot deliver on their solution, Charlie, I think you're saying will he be willing to be something like a backup plan？ I try to avoid answering it directly, but let me say that yes, it will be number one priority. I already indicated that TSMC's customers' product can be introduced into the market smoothly. That's a number one priority.
詹家鴻 - 摩根士丹利, Analyst
(00:46:53)OK, and that gives you enough hint. Yes, yes, indeed. So thanks for all the answers. I hope you don't give any food to others, including the advanced packaging. Thank you, thanks everyone. Thank you all. Alright, operator, let's move on to the next participant, please. Next one, Sunny Lin, UBS, go ahead please.
林莉鈞 - 瑞銀, Analyst
(00:47:19)Good afternoon.Thank you very much for taking my question.So my first question is to have a bit more color on how we should think about CapEx beyond 2026.Recall a few quarters ago you mentioned if you are doing your job well then you may be able to drive CapEx to grow a bit less than topline.
林莉鈞 - 瑞銀, Analyst
(00:47:41)But now obviously the overall cloud area demand has further strengthened and you're also willing to support your clients with more substantial expansion. And therefore, I wonder at this point when you look at maybe the coming two years, would you expect maybe CapEx to grow a bit faster, maybe in line with sales, or even a bit faster just like for 2026？ And then meanwhile obviously the tool price is also increasing given a very tight supply.And therefore going to 2027,
蘇志凱 - 台積電, Investor Relation
(00:48:20)would the higher tool price also be a driver for higher CapEx as well？ Thank you. What was the last part of your question, Sunny？ Higher tool price, higher what？ When we think about 2027 CapEx, should we also consider tool price inflation to be a meaningful variable for a lot higher CapEx compared with the share understood？ Okay, sorry, okay, thank you. So Sunny's first question is about our CapEx beyond 2026. Really, she's asking about 2027, 2028, the next two years with the strong, extremely robust demand that C.C. indicated. The question is around our capital intensity the next two years.
黃仁昭 - 台積電, CFO
(00:49:01)How do we see the capital intensity trending revenue growth versus the CapEx growth part one, and then also the impact of tool inflation on the CapEx outlook as well. Sunny, this is Wendell. It's a bit too early to share the CapEx number beyond this year. But as we said in the prepared remarks, we have very strong conviction in the AI megatrend.Therefore, our CapEx from 2026 to 2028 is expected to be significantly higher than the past three years, and this is a step up of our investment to support the customers' growth. We have no intention to leave any food on the table for others. The tool price inflation is real.
黃仁昭 - 台積電, CFO
(00:49:55)The tool price, material, labor cost, etc. However, the majority of the CapEx is always related to the longer-term demand. So that will be the composition going forward, and capital intensity-wise, as we always said, if we do our job right, the increase in revenue will outpace the increase in CapEx, and that is still the case from what we are looking at.G
林莉鈞 - 瑞銀, Analyst
(00:50:27)Got it. Thank you very much.If I may, I have a very quick follow-up regarding the CapEx side.Earlier, when you raised the margin dilution from overseas to I think 3 to 4 percent starting from 2027, given the faster overseas expansion.But for the US, you're still so far focused on Arizona.So does that imply for Arizona that the expansion for the second phase will happen very quickly？Or are you actually accelerating the expansion for the third phase or even the other phases as well, is there therefore a result for higher margin dilution for next year？
蘇志凱 - 台積電, Investor Relation
(00:51:06)Okay, so Sunny's question is kind of about the puts and takes on next year's margin. She does note, as Wendell said in our prepared remarks, that the overseas fabs will widen a bit to three to four percent in the next few years, so she wonders what's driving that wider dilution. C.C. did say we are pulling in the schedule for the second fab for three nanometer. Her question is, are we also pulling in the third fab？ What's leading to this wider dilution, and maybe...
黃仁昭 - 台積電, CFO
(00:51:36)Sunny, as we mentioned, we are doing everything we can wherever we can to increase our capacity to meet the strong demand from customers, and we are also accelerating everywhere, including in the US.We did mention before that in the later part of the five-year period, the dilution margin from overseas fabs will be three to four percentage points, and that still remains the case. So it's three to four percentage points in the second part of the five-year period. I see. Thank you very much for the clarification. My second question...
蘇志凱 - 台積電, Investor Relation
(00:52:25)I want to follow up on the power supply side. That was two questions, Sunny, so that's already two questions. Can we, sorry, but we probably just want to accommodate as many as we can. We're gonna move on. Sure. Thank you for your understanding. Operator, can we move to the next participant, please？ Next one is from Bank of America, go ahead please.
劉浩斯 - 美銀, Analyst
(00:52:49)Yes, hi, C.C., Wendell, and Jeff, thanks for taking my questions and congrats on the great results. My first question will be on your view regarding the potential shift in AI demand mix. You mentioned in the prepared remarks that the AI accelerator chipset demand is proliferating into agentic AI demand, including CPUs and networking switches.
劉浩斯 - 美銀, Analyst
(00:53:08)We understand the overall AI investment is still pretty strong and even trending stronger across the board, but can we get more clarity on whether you are seeing your customers' demand shifting toward more efficient compute solutions, especially as monetization gets more important, and how should we think about the incremental opportunity for your manufacturing and packaging business？Thank you.
蘇志凱 - 台積電, Investor Relation
(00:53:28)Haas's first question is on the AI-related demand. His question is...
魏哲家 - 台積電, CEO
(00:53:47)Are we seeing a shift in the AI-related demand more and more to CPU or networking switches and away from AI accelerators or any type of comment？ Yeah, well, all I can say is AI's demand is extremely robust. Whether it's coming from accelerators or more from the CPU side, it's not for me to make a comment, although we did see the demand from agentic AI CPUs continue to increase. Yes, that is a trend today.But other than that, everything is very robust, and I want to emphasize again, in our judgment, we consider all the parameters, and the demand actually is still far above our capability today to supply.
劉浩斯 - 美銀, Analyst
(00:54:44)And we are working very hard to narrow the gap. That's all I can say. Thank you. That's very clear. My second question is just regarding the yield learning curve going forward for your dual technology tracks strategy. So historically, I think you have been ramping up the yield of a new node through producing chipsets with smaller die size and simpler design to improve the learning curve of a new node.
劉浩斯 - 美銀, Analyst
(00:55:12)But for the future, families are supporting both conventional power delivery for applications like mobile and consumer applications and super power rail technology for HPC and AI chipsets. So operating tool architectures at the same time make the learning curve more challenging or increase manufacturing complexity, and how should we think about the implication to your gross margins from the yield and also cost control perspective？Thank you.
蘇志凱 - 台積電, Investor Relation
(00:55:41)Okay, so Haas's second question is really about ramping a new node, the learning curve of yield and cost, and therefore the implication to gross margin. Really, I think that's what he's driving at, and his question is that in the past, a new node is mostly ramped with smaller die size and simpler design, but you know, so today we have both the...
蘇志凱 - 台積電, Investor Relation
(00:56:07)smartphone and also with the AI and HPC applications coming in. Does that increase the complexity of the node process architecture, make the learning curve more challenging or difficult, and therefore the implication to the margin？ Well, today's situation actually is a little bit different from previous years. Yes, we now have a very strong demand from smartphone and also AI HPC applications, and so the smaller die size per se or the big die size in the accelerator, they happen at the same time, and this is two TSMC's advantage. Let me say that because we are good...
魏哲家 - 台積電, CEO
(00:56:27)We have been prepared for this kind of thing, and our results are very excellent, and customers are very happy to work with us. And so the learning curve, yes, but we are doing a reasonable job, and so the customers are very happy today. Okay, thank you so much.Okay, thank you, operator. Let's move on to the next participant, please.
蘇志凱 - 台積電, Investor Relation
(00:57:24)The line Macquarie, go ahead please. Hi, I really appreciate management taking my question. I have a question on the power as a getting vector. So I want to understand how the power grid constraint leads to reduced customer forecast in history, and also could this tighter and tighter power...
賴以哲 - 麥格理, Analyst
(00:57:36)read the supplies, make your customer actually anticipating adoption of your super power rail product for the better performance per watt？ Thank you. Arthur's first question is about the power supply or electricity supply—is it a gating factor, and have we seen that lead to a reduction in customer forecast？
蘇志凱 - 台積電, Investor Relation
(00:58:02)And with the tighter on the other side, or on the other hand, with the tighter power electricity supply, have...we seen more customer adoption of super power rail technologies？ Well, let me update that. Definitely, power supply situation is one of the consideration factors that we are looking into, and that's why also we are doing one more step to double-check whether the power supply situation in the US, and you know, we have done all the study, and so far so good. Let me say that, and whether this kind of situation changes our customers' behavior and move more into the backside power rail...
魏哲家 - 台積電, CEO
(00:58:45)The answer is no. Whether you use the backside power, those kind of metallization schemes are based on your need for your product. So some of the accelerator might be using it, some of the products like mobile phones, they don't use it.So it depends on customer's product. Did I answer the question？ Yes, thank you. Do you have a second question？ Oh yeah, thanks, Jeff. So just recall the previous discussion on the agentic AI domain on the CPU.
賴以哲 - 麥格理, Analyst
(00:59:52)So I wonder, you know, according to our previous framework demand forecast framework, the mid-to-high-50s growth including the CPU or not, and if we heard our clients increase the CPU forecast significantly, when is the next time we refresh our AI demand growth numbers？Okay, so Arthur's second question is on his question is really on our, we already stated, but anyway, our AI accelerator definition, he wants to know with the emergence of agentic AI in CPU, does that AI accelerator definition include CPUs or not？
蘇志凱 - 台積電, Investor Relation
(01:00:48)And if when we will provide an inclusion for him. Let me answer the question： it's not. It's not including in our AI demand calculation. The reason is very simple because we cannot identify which CPU user in the conventional server CPU or AI server CPU.
魏哲家 - 台積電, CEO
(01:01:13)And also that it depends on our customer's application and their own allocation also.
賴以哲 - 麥格理, Analyst
(01:01:41)No, so far today we stick to our initial very narrow definition on the AI's demand. Understand, and so if we have seen a very strong CPU-driven demand, when will we revise up the AI book？ Arthur, I think we already said very clearly it's not part of the AI accelerator definition. It's a narrow definition, but it is certainly part of our business.
蘇志凱 - 台積電, Investor Relation
(01:02:08)Yeah, sure, operator, in the interest of time, can we take a question from the last participant on the line, please？ Sahith Singh, Stifel Financial, go ahead please.
Sahith Singh - Stifel, Analyst
(01:02:37)Hello, thank you for the question.Into 2027, you have N3 turning accretive and now that's crossed over. N2 is still in its dilutive ramp, and the overseas dilution is widening. On the offset side, there have been reports of significant price increases across your mature and advanced nodes.Could you provide some color into perhaps some of that conversation and...
蘇志凱 - 台積電, Investor Relation
(01:03:06)where pricing does move？ Does it typically apply across the existing contracted book, or is it mainly being applied to incremental capacity above what customers have already committed to？ Yeah, okay, so the first question is talking about, I guess, you're asking about the potential puts and takes for next year or you're asking specifically on pricing？ Sorry.A pricing, specifically on pricing. Okay, so it's a very specific question that there's...
魏哲家 - 台積電, CEO
(01:03:55)reports that we are increasing the price. He wants to know does it apply across the existing contracted commitments from customers or is it mainly for the incremental capacity？ Well, we have discussed this kind of thing before that our pricing strategy is very strategic. It also depends on the market segment, depends on the location, and depends on the technology and something.Once we offer the flexibility of the physical location, like in the US, it will be a little bit different from the one we produce in Taiwan.
Sahith Singh - Stifel, Analyst
(01:04:50)So no matter what, well, we try to get our value to be recognized, and we will give our shareholders the maximum value of our technology. Understood, thank you for the second question. You know, something you said in your prepared remarks stuck out to me was, 「We will not be leaving food on the table.」 And earlier, I think it was maybe one or two weeks ago, there was the announcement via GlobalFoundries that they would be providing silicon interposers to TSMC, and so would love some color into how are you thinking through these strategic decisions in terms of procuring from some of the specialty foundries versus providing in-house.
蘇志凱 - 台積電, Investor Relation
(01:05:27)Thank you. So his second question is again he notes that recently we...
魏哲家 - 台積電, CEO
(01:05:43)had an announcement with GlobalFoundries on interposers, so how do we view these partnerships and what is our approach strategically？ Let me answer the question. We design a deal with GlobalFoundries. And this is part of our overall strategy in the backend supply. Actually, our number one priority is to help our customer to be successful in their market.We want them to be fully supported by all the supply, including the frontend and backend.
蘇志凱 - 台積電, Investor Relation
(01:06:48)Definitely, we have a little bit shortage on the backend, and we like to work with our so-called partner with GlobalFoundries so that we can both TSMC and GlobalFoundries can support TSMC's customer for their product to be introduced with enough support and capacity.
蘇志凱 - 台積電, Investor Relation
(01:07:16)Understood, thank you very much for my questions. Thank you for your questions, thank you for all the participants. This does conclude our question and answer session. Before we conclude today's conference, please be advised that the replay of the conference will be accessible within thirty minutes from now, the transcript will become available twenty-four hours from now, and you can find both will be available through TSMC's website at www.tsmc.com.