May 8, 2025 /SemiMedia/ — TSMC has asked key suppliers to submit revised pricing plans for raw wafers and other inputs, in response to the rapid appreciation of the NT dollar that threatens to squeeze operating margins.

Sources familiar with the matter said TSMC is accelerating its cost-reduction initiatives, originally intended for next year, and is pushing for raw wafer prices to be slashed by at least 30%. The request reflects the company’s urgency to offset foreign exchange risks.

In recent weeks, the NT dollar has surged from about 33 to 29 against the U.S. dollar, marking a sharp appreciation. Analysts estimate that every 1% rise in the local currency could cut operating profit margins by 0.4 percentage points, a significant hit for an export-driven industry.

TSMC has not revised its 2025 guidance but acknowledged it is monitoring exchange rate fluctuations closely. The company’s Q2 forecast assumes a USD/NTD exchange rate of 32.5, projecting revenue between $28.4 billion and $29.2 billion, with gross margins of 57% to 59% and operating margins of 47% to 49%.

The request for cost reductions signals TSMC’s proactive approach to maintaining profitability amid global currency shifts and its ongoing effort to stabilize costs across the semiconductor supply chain.