TSMC CEO CC Wei says customers who want to manufacture in the chip giant's non-Taiwanese facilities will have to share the cost by paying more.
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During the Q&A portion of TSMC's first-quarter earnings call, an analyst asked the CEO how the world's largest chip contract maker would cope with rising expenses, such as electricity, to reach its 53 percent gross margin goal by 2025.
The analyst suggested that if the cost of doing business went up and could erode gross margins, the only way to offset it would be to implement price increases.
Although Wei said he could not disclose pricing strategies because such information is confidential, he elaborated on how pricing would work at factories with higher operating costs. "We are facing some kind of higher costs overseas or even recently, inflation and electricity."
