From Financial Modeling Prep: 2025-03-23 04:38:00

Taiwan Semiconductor Manufacturing (TSMC) is investing $165 billion to expand U.S. chip production, aiming to shift 25-30% of revenue to the U.S. by the early 2030s. Analysts estimate this move could cover 40-50% of the U.S.’ need for cutting-edge chips by then.

The U.S. expansion will boost TSMC’s presence globally, potentially generating one-third of revenue outside Taiwan. However, higher costs in the U.S. may impact margins, with analysts predicting a 2-3% gross margin drag.

TSMC plans to maintain Taiwan’s technological leadership while ramping up U.S. capacity, ensuring the island remains an innovation hub. This strategic move aims to enhance supply chain resilience and mitigate geopolitical risks.

TSMC’s investment signifies a push for semiconductor self-sufficiency amid global tensions, reshaping the chip supply landscape. While profitability may be affected in the short term, this expansion positions TSMC as a key player in domestic chip production.



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