TAIPEI (Taiwan News) — TSMC could raise prices for advanced processes amid US President Donald Trump’s call for tariffs on semiconductors, Commercial Times reported Tuesday.

According to industry sources, pricing for advanced processes this year may increase to over 15%, per Commercial Times. The concerns come as Trump remarked about imposing tariffs on chips and pharmaceuticals on Jan. 27, threatening to raise them to 100%.

Investors said companies setting up factories in the US without government subsidies could face lower profits. Estimates suggest that without subsidies, TSMC’s Arizona plant profit margins may only reach 70% of those in Taiwan, dragging down overall gross margins.

Sources said the US imposing tariffs on Canada, Mexico, and China effectively undermines the United States-Mexico-Canada Agreement, forcing supply chain companies to realign their global operations.

Furthermore, reports indicate that the US is drafting new chip restrictions. Currently, advanced process chips below 14 and 16 nm destined for China are subject to export licensing requirements.

The smaller the process node, the more transistors can be packed in a given space, thereby improving chip performance. Such advanced chips can be used in AI, radar systems, and advanced weaponry, which the US wants to restrict from China.