TSMC increases investment in the United States, with overseas expansion set to continue squeezing profit margins

According to CNBC, driven by US President Trump's push to bring chip manufacturing back to the United States, TSMC stated that overseas capacity expansion has increased production costs and will continue to weigh on the company's profit margins for several years to come. TSMC has announced a total investment of 200 billion US dollars in the US, including the newly announced 100 billion US dollar advanced semiconductor manufacturing and advanced packaging projects. TSMC Chief Financial Officer Wendell Huang said that the launch of overseas wafer plants is expected to bring about a 2% to 3% gross margin pressure in the early years, which may later expand to 3% to 4%. Morningstar analysts estimate that the cost of producing chips in the US is 20% to 50% higher than in Taiwan.