Analysis released January 3, 2026, detailed the financial impact of Taiwan Semiconductor Manufacturing’s (TSMC) U.S. expansion. While the strategic move aims to dominate the AI semiconductor landscape and align with U.S. national security goals, reports highlight a substantial drawback: increased operating costs.
The primary drivers of these higher expenses are labor costs and wafer depreciation. These costs are considerably greater in the U.S. compared to Taiwan.
Analysts expressed concern that this disparity could significantly reduce chip margins for TSMC’s American-made products.
This discussion surfaces amid positive sentiment regarding TSMC’s central role in the AI sector. The company benefits from strong demand from major clients, including Nvidia, and secured a one-year approval for U.S. export licenses covering its China operations. The strategic U.S. investments are part of a broader plan to diversify the manufacturing footprint and mitigate geopolitical risks.