[News] TSMC’s U.S. Investment Could Lead to 15% Price Hike, with AMD and NVIDIA Cheering on the Expansion

While TSMC is set to expand its U.S. investment to a staggering $165 billion, price hikes for its advanced nodes seem to be inevitable, with adjustments reflecting the high cost of U.S. fabs, as per Commercial Times. With Trump ruling out the possibility for subsidies, analysts expect at least a 15% increase to cover rising costs, the report suggests.

Previously, with rising chip tariffs and production costs, the market speculated that TSMC might raise prices for advanced nodes by 5% to 10%. However, the increase could now be even higher.

The Commercial Times report indicates that U.S. production could cost roughly 30% more per wafer than in Taiwan. With TSMC and its customers sharing the extra cost, a price increase seems highly likely.

In detail, sources told Commercial Times that depreciation costs for U.S. fabs could be 26% higher, while labor costs are 66% more expensive than in Taiwan. Even at full capacity, the cost per wafer in the U.S. is expected to be 28.3% higher than in Taiwan, the report adds.

AMD/NVIDIA Cheer on TSMC’s U.S. Expansion

Meanwhile, TSMC may not have to worry about a customer backlash in terms of a potential price hike. To note one, AMD CEO Lisa Su praised TSMC’s expansion as a “huge step forward for advanced chip manufacturing in the U.S.”

Su shared on social media that as a lead customer at TSMC’s Arizona plant, AMD has seen great results and looks forward to producing more high-performance compute and AI chips in the U.S.

On the other hand, U.S. chip giant NVIDIA also highlighted on social media that TSMC’s new fabs will serve as the “foundational pillar” of a U.S.-centered technology supply chain. NVIDIA added that it will fully leverage TSMC’s global manufacturing network to boost supply agility and resilience.

TSMC will invest an additional $100 billion in the U.S. to build five more semiconductor plants in the coming years, which reportedly includes three new fabs, two advanced packaging facilities, and a major R&D center.

As highlighted by The Guardian, Trump said TSMC’s massive investment could help it dodge a 25% industry-wide tariff, implying the chances of the foundry giant securing additional subsidies are slim.

Read more

• [News] TSMC Scales up U.S. Investment with $100B More, Adding Five New Chip Facilities in Coming Years
• [News] TSMC’s $100B U.S. Bet: Six Big Questions Behind the Largest Foreign Investment in U.S. History

(Photo credit: TSMC)