00:02TSMC's U.S. expansion is raising production costs and pressuring margins as Trump pushes
00:07advanced semiconductor manufacturing onshore, according to CNBC. The chipmaker has committed
00:13$200 billion to U.S. projects, including a newly announced $100 billion investment in
00:18manufacturing and packaging facilities. TSMC said overseas fab expansion will reduce gross margins
00:24by two to three percentage points in the early stages and three to four points later. Morningstar
00:30estimates U.S.-made chips could cost 20% to 50% more than those produced in Taiwan. Analysts expect
00:37customers to absorb much of the added expense because TSMC faces little competition in advanced
00:43chips. The company reported a 77.4% increase in second quarter profit and a 67.7% gross margin.
00:50For all things money, visit Benzinga.com.
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