Trump’s AI Chip Demand Squeezes TSMC’s Profits

The Taiwan-based chipmaker TSMC has announced $200 billion in investment into U.S. manufacturing since President Donald Trump returned to power in 2025. The push for American-made artificial intelligence chips is now pressuring the company’s profit margins, as building new factories in the United States costs far more than in Taiwan. Industry analysts say the massive spending, while securing future supply chains, is cutting into TSMC’s bottom line for the near term. The move aligns with Trump’s policy to reduce reliance on foreign chip production for national security and AI development.