TSMC Seeks 30% Wafer Price Cut Amid NTD Surge

According to reports, TSMC has recently urged its partners to submit cost reduction proposals in response to the rapid appreciation of the New Taiwan Dollar (NTD). Industry insiders reveal that TSMC has expanded its request, asking several companies to submit new quotations ahead of schedule.

Over the past month, the NTD has seen a sharp rise in value, strengthening from approximately 33 NTD to the US dollar to as high as 29 NTD. Market analysts estimate that for every 1% appreciation in the NTD, a company's operating margin could decline by around 0.4 percentage points.

Sources indicate that TSMC initially planned to request a price cut of at least 30% for raw wafers starting next year. However, due to the growing pressure from exchange rate fluctuations, the company has accelerated this timeline and is now requesting revised quotations earlier than originally scheduled.

TSMC's financial outlook for the second quarter of 2025 projects consolidated revenue between USD 28.4 billion and USD 29.2 billion. Based on an exchange rate of 32.5 NTD to 1 USD, the company expects a gross margin of 57% to 59% and an operating margin between 47% and 49%. Continued appreciation of the NTD would therefore pose a significant challenge to TSMC's profitability in the coming quarter.

In response to inquiries about exchange rate risks, TSMC stated that there are currently no plans to revise its Q2 or full-year 2025 performance forecasts. However, the company emphasized that it will continue to monitor currency fluctuations with caution.