Jul. 22 at 7:44 AM
$GOOGL? TSMC has arguably committed the most. Its aggressive expansion in the US exposes it to higher manufacturing costs, creating the potential for margin resistance.
Building in the U.S. is significantly more expensive.
"Overall, we estimate that TSMC's U.S. chips will cost 20-50% more than those made in Taiwan, depending on the timing of subsidies, recognition of tax credits and other cost fluctuations," Felix Lee, a senior equity analyst at Morningstar, told CNBC. Lee added that he expects customers to bear a larger share of the higher manufacturing costs.
TSMC is expected to raise prices for advanced, high-capacity chips by up to 10% in 2027, Nikkei reported on Tuesday. TSMC told CNBC it would not comment on pricing.
