TSMC Doubles Down On Costly US Chip Builds
After a nudge from the Trump administration, its Arizona plant went from blueprint to busy wafer line. At a Washington AI event AMD's Lisa Su admitted that US runs rack up roughly a 20% premium, so clients like AMD and Nvidia (NASDAQ:NVDA) are shelling out 5%20% more just to snap up capacity.
Warning! GuruFocus has detected 7 Warning Sign with MSFT.
Pricey labor, hefty equipment import fees and a supply chain still finding its footing back home all add up. That said, Su still expects AI accelerator demand to soar toward a $500 B market over the next five years.
You get extra supply security but thinner margins for TSMC and its partners.Investors will be watching TSMC's late?July earnings for hints on how they'll tame those cost overruns.
This article first appeared on GuruFocus.
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