Taiwan Semiconductor warns: Electricity prices at Taiwan plants will rise to the highest in the world, dragging down gross margin

Taiwan Semiconductor's Chief Financial Officer Jensen Huang told investors that the power costs for the semiconductor foundry are expected to be higher in Taiwan than in other regions globally. Huang stated last month, "Basically, electricity prices have doubled over the past few years. Therefore, we believe that next year, Taiwan's electricity prices will be the highest among all operating regions." Taiwan Semiconductor previously indicated that rising power costs would lead to a decline of about 1 percentage point in the company's gross margin by 2025. The recently announced quarterly gross margin for Taiwan Semiconductor was 57.8%, approximately 2 percentage points higher than the company's expectations. Taiwan Semiconductor maintains a long-term gross margin target of 53% or higher. Taiwan Semiconductor's stock price has risen 88% year-to-date