BlockBeats News, July 22nd, according to CNBC's report, influenced by the Trump administration's push to reshore advanced chip manufacturing to the United States, the global semiconductor foundry leader TSMC stated that overseas capacity expansion is driving up production costs and will continue to drag down the company's profit margin in the coming years.

Since Trump's return to the White House in 2025, TSMC has announced a cumulative investment of $200 billion in the United States, including the latest $100 billion advanced semiconductor manufacturing and advanced packaging project. The White House stated that these investments are the result of Trump's trade and industrial policy initiatives.

TSMC's net profit in the second quarter increased by 77.4% year-on-year, hitting a new record high, with a gross margin of 67.7%, higher than the first quarter's 66.2%. However, the company's CFO, Wendell Huang, stated that the commissioning of overseas fabs will continue to dilute the gross margin. It is expected to bring about a gross margin pressure of around 2% to 3% in the early years, which may later expand to 3% to 4%.

Morningstar analysts estimate that the cost of manufacturing chips in the United States is 20% to 50% higher than in the Chinese Taiwan region, depending on subsidies, tax incentives, and other cost factors. The market generally expects TSMC to pass on some of the costs to customers through price increases. Earlier reports indicated that TSMC plans to raise prices for advanced and mature process foundry services by up to 10% in 2027.

Analysts point out that despite higher onshore production costs in the United States, driven by AI demand growth, supply chain diversification, and U.S. industrial policy initiatives, TSMC will continue to expand its U.S. production capacity. With its leading position in the advanced process field, the company has a strong ability to transfer costs.