The Cash Cow
Mature nodes generate high margins on largely depreciated fabs. While the revenue share is declining as advanced nodes grow faster, the absolute revenue is stable and the customer base (automotive, IoT) has long product lifecycles. TSMC's pricing power extends even to mature nodes through capacity allocation leverage.
Stable Long-Lifecycle Demand
Automotive and IoT provide TSMC with diversified, predictable revenue on depreciated fabs. Product lifecycles of 5-10 years and 2-3 year qualification cycles create natural customer lock-in. The Kumamoto and Dresden fabs are strategically placed near major automotive customers.