TAIPEI (Taiwan News) — TSMC may be forced to increase advanced chip production in the US amid rising geopolitical pressures, the Taiwan Institute of Economic Research said Thursday.

Speaking at TIER’s economic outlook seminar, researcher Liu Pei-chen (劉佩真) said US pressure on Taiwan’s semiconductor sector has intensified since President Donald Trump took office, per CNA. She said TSMC, as the global foundry leader, has become a primary target of US strategic interest.

TSMC has decided to significantly expand its US investment and its chips are exempt from tariffs, per RTI. Liu said that as the company’s US footprint grows, boosting the share of advanced production in the US may be inevitable.

From an industry perspective, this shift could weaken Taiwan’s domestic semiconductor ecosystem, Liu explained. As more Taiwanese firms follow TSMC’s lead, the local industry’s economic impact may gradually shift abroad.

Despite these challenges, Liu noted Taiwan’s semiconductor output value is projected to reach a record high this year, with growth surpassing the global average. In foundry services, TSMC remains dominant, ranking as the second-largest beneficiary of the AI boom after Nvidia.

Liu warned that under Trump, global supply chain restructuring will be complex and costly. She concluded that these dynamics are reshaping geopolitics, presenting risks and opportunities for Taiwan.