0905 GMT - TSMC is pushing forward with major U.S. expansion to mitigate the impact of trade tensions, Gimme Credit analyst Saurav Sen says in a research note. TSMC's tech leadership in the foundry sector is "insurmountable," and the main threat to its business is geopolitical tensions, Sen says. The chip giant plans to invest $165 billion in the U.S., including six advanced fabs, two packaging facilities and an R&D center in Arizona. With plans for 30% of its future 2-nanometer chips to be made in Arizona, that "creates a de facto 'tariff-proof cluster,'" the analyst says. Even though these overseas fabs are margin-dilutive, TSMC seems confident that it can recoup the value via pricing, scale and operational efficiency, Sen adds. TSMC's shares last closed at NT$1,130.00. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

July 22, 2025 05:05 ET (09:05 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.