Due to the U.S. government's tariff policies under the Trump administration, major American tech companies like Apple, AMD (SMCI, Financial), and NVIDIA are increasing their production at TSMC's U.S. semiconductor plant to avoid future tariffs. This surge in demand has led to a supply shortage, prompting TSMC to consider a significant price hike.
Reports indicate that TSMC's Arizona facility, which produces 4nm chips, is experiencing capacity constraints due to a flood of customer orders. As a result, there is intense competition and waiting lines for production slots. TSMC is rumored to be planning a 30% increase in its contract manufacturing prices to offset the high costs associated with U.S. production. This move is expected to reduce the financial risks of operating its American facility.
