Q1: What is the current AI demand outlook, especially for CoWoS (Chip-on-Wafer-on-Substrate) capacity?

A:
- AI demand remains strong, with CoWoS capacity expected to double in 2025.
- The supply-demand gap for CoWoS is narrowing but demand still exceeds supply.
- TSMC is working hard to ensure capacity meets demand, with the situation expected to be more balanced in 2026.

Q2: Regarding the US investment and expansion plans:

A:
- The $100 billion additional investment in Arizona is driven by strong customer demand, especially for AI-related products from companies like Apple, NVIDIA, AMD, and Qualcomm.
- About 30% of TSMC's 2nm capacity will be located in Arizona, creating an independent leading-edge semiconductor manufacturing cluster in the US.
- TSMC is not involved in tariff negotiations between governments but respects their decisions.
- The company is discussing pricing strategies with major customers to reflect the value of geographic manufacturing flexibility.

Q3: How does the recent geopolitical situation, including potential semiconductor tariffs, impact TSMC's forecast and production planning?

A:
- TSMC has considered potential impacts in its forecasts but hasn't seen changes in customer behavior so far.
- The company maintains its full-year 2025 revenue growth forecast of close to mid-20% year-over-year.
- TSMC will continue monitoring the situation closely.

Q4: Can you provide more details on the R&D center planned for Arizona?

A:
- The R&D center will employ about 1,000 engineers, focusing on supporting the manufacturing cluster and improving its technology.
- While the primary focus is on manufacturing support, the center will also conduct some exploratory work and collaborate with universities.
- Long-term plans may include involvement in new node development and pathfinding opportunities.

Q5: What is the timeline for the Arizona fab expansion, and can it be accelerated?

A:
- TSMC is working to speed up production at the second fab and construction of the third fab.
- The company is responding to strong customer demand but didn't provide specific timeline changes.
- Construction and ramp-up schedules for additional fabs will be based on customer demand and market conditions.

Q6: How does TSMC view the potential for structural changes in AI chip design, such as chiplets, when moving to 3nm and beyond?

A:
- TSMC acknowledges the trend towards advanced packaging technologies like CoWoS and is aggressively developing panel-level packaging.
- The company plans to build advanced packaging facilities in Arizona to complement its wafer manufacturing capabilities.
- TSMC continues to work closely with customers on evolving chip design trends and technologies to meet future AI demands.

Disclaimer: This earnings call summary is generated by AI and is for informational purposes only. Due to technical limitations, inaccuracies may exist. It does not constitute investment advice or commitments.