Trump's push for American-made AI chips hits TSMC's margins - CNBC

What the report says

CNBC reports that Taiwan Semiconductor Manufacturing Co.’s push to expand U.S. production is adding costs and weighing on margins, as President Donald Trump presses chipmakers to manufacture more advanced semiconductors in America. Since Trump returned to office in 2025, TSMC has announced $200 billion in U.S. investment commitments, including a recently unveiled $100 billion plan for advanced chipmaking and packaging facilities.

The company remains strongly supported by demand tied to artificial intelligence. CNBC noted that TSMC’s market value has more than doubled over the past year, and the chipmaker reported a 77.4% year-over-year increase in second-quarter profit. Still, CFO Wendell Huang said on an earnings call that overseas fabrication plants diluted gross margin, with more pressure expected over the next several years as those projects scale up.

U.S. officials framed the investments as a result of Trump’s trade and industrial policies. A White House spokesperson told CNBC that semiconductor commitments stem from the administration’s economic agenda, while Commerce Secretary Howard Lutnick said TSMC’s additional investment would support American manufacturing and jobs. Analysts cited by CNBC said producing chips in the U.S. is significantly more expensive than in Taiwan, though some of those costs may be passed to customers because TSMC dominates leading-edge chip manufacturing.

The issue matters because TSMC is central to global AI and advanced electronics supply chains. CNBC’s reporting suggests the company is balancing strong demand and geopolitical pressure with the financial impact of duplicating high-end manufacturing outside Taiwan.