Trump’s ‘America First’ Chip Push Squeezes TSMC’s Profits Despite AI Boom

President Donald Trump’s ‘America First’ policy, aimed at boosting domestic semiconductor manufacturing, is driving TSMC’s massive $200 billion investment into U.S. facilities since 2025. This costly expansion, with U.S. production estimated to be 20-50% more expensive than in Taiwan, is set to dilute TSMC’s profit margins by 2-4% in the coming years, despite robust demand from the AI sector. The world’s leading chipmaker is expected to offset these higher costs by raising chip prices, a move largely enabled by its unparalleled dominance in the advanced chip market.

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