Will Your Next Device Cost More? TSMC’s US Chip Prices Set To Soar

Trump’s decision to implement massive tariffs on goods imported into the US has sent shockwaves across global markets. Some have questioned his motives, but if anything, it has brought awareness to the fact that many companies rely heavily on China and that it might also be a good time to diversify supply chains. Unfortunately, such an effort could come at a cost. According to a recent report, building chips in TSMC’s US plant in Arizona could result in prices hiking up by as much as 30%.

TSMC raising prices

The report follows a comment made by NVIDIA’s CEO, Jensen Huang, during the Computex 2025 trade show. One reporter asked Huang about the potential extra price NVIDIA might have to pay for making chips in the US. Huang didn’t dive into specifics but stated that TSMC’s price is “consistent and fair for everyone.”

Huang acknowledges that building chips on the 2nm process is “incredibly expensive, incredibly hard,” but he also said that “whatever is the price, as long as it’s consistent and fair, that’s the price.”

It’s not surprising that building chips at the TSMC US plant will result in raised prices. After all, TSMC’s facilities in the US aren’t on the same level as those in Taiwan. Furthermore, putting aside the cost of technology and equipment, the cost of labor is higher in the US than in Taiwan. This means that TSMC will have to raise the prices of its chips to maintain its profitability.

Building on the 2nm process

As it stands, multiple companies, including Apple and Qualcomm, are expected to take advantage of TSMC’s new 2nm process, apart from NVIDIA. It was also recently revealed that MediaTek has plans to debut its own 2nm SoC in 2026. However, TSMC needs to be wary of raising its prices too much.

While the company is more or less the de facto chipset maker for major tech companies around the world, it isn’t the only one in the market. Samsung has its own foundry. In fact, Samsung is planning on kicking off 2nm manufacturing as well, and recent yield rates have proven to be quite promising. This means that if Samsung can get up to scale, TSMC’s raised prices could very well price them out of the market.

We doubt that will happen anytime soon, but it’s something that TSMC should definitely be aware of.