[Trump Pushes Chip Manufacturing Back to the U.S., TSMC Says Overseas Expansion Will Continue to Compress Profit Margins] BlockBeats News, July 22, according to CNBC, influenced by the Trump administration's push to bring advanced chip manufacturing back to the U.S., global semiconductor foundry leader TSMC stated that overseas capacity expansion is driving up production costs and will continue to weigh on the company's profit margins in the coming years. Since Trump returned to the White House in 2025, TSMC has announced a cumulative investment of $200 billion in the U.S., 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 for the second quarter grew 77.4% year-on-year, hitting a new record high, with a gross margin of 67.7%, up from 66.2% in the first quarter. However, the company's Chief Financial Officer Huang Renzhao stated that the ramp-up of overseas wafer fabs will continue to dilute gross margins, with an estimated initial impact of about 2% to 3% in the coming years, potentially expanding to 3% to 4% in later stages. Morningstar analysts estimate that the cost of producing chips in the U.S. is 20% to 50% higher than in Taiwan, depending on subsidies, tax credits, and other cost factors. The market widely expects TSMC to pass on part of the costs to customers through price increases. Previous media reports indicated that TSMC plans to raise prices for advanced and mature process nodes by up to 10% by 2027. Analysts pointed out that despite higher domestic manufacturing costs in the U.S., driven by growing AI demand, supply chain diversification, and U.S. industrial policy, TSMC will continue to expand its production capacity in the U.S. Leveraging its leading position in advanced process technology, the company has strong cost transfer capabilities. [Original Link]