Economies of scaleChip fabrication capacity
→TSMC spent NT$1.27 trillion on capital expenditures in 2025, primarily to install and expand capacity, mainly for its 2-, 3- and 5-nanometer nodes. It shipped about 15 million 12-inch equivalent wafers against capacity above 17 million, and gross margin rose from 56.1% to 59.9%, which it attributes mainly to higher utilization and cost improvement.
Economies of scale