Bernstein: The impact of Middle East tensions on TSMC is manageable

Golden Ten Data reported on March 11 that Bernstein analysts stated in a research report that the impact of the Middle East conflict on TSMC (TSM.N) should be manageable. After meeting with a TSMC executive, the analysts noted that TSMC's operations have so far remained unaffected. They indicated that TSMC maintains strong profit margins, allowing it to absorb incremental costs from rising energy prices and has the ability to pass these increased costs on to customers. They said, "Even in the extreme scenario where energy supply in Taiwan faces difficulties, we believe TSMC will receive priority energy supply." They added that TSMC has also been enhancing the resilience of its supply chain by sourcing key supplies such as natural gas and chemicals from multiple sources.