TSMC's U.S. investment is about politics, not business: Analyst

July 20, 2026 - 10:22

A veteran tech analyst has cast doubt on the business logic behind Taiwan Semiconductor Manufacturing Company's staggering $265 billion investment in the United States, arguing that political pressure rather than pure market forces is the primary driver. Kirk Yang, founder and chairman of Kirkland Capital, offered a blunt assessment of the chip giant's American expansion during a recent interview. He suggested that the enormous financial commitment, which represents one of the largest foreign direct investments in U.S. history, does not align with standard corporate cost-benefit analysis.

Yang pointed to the significantly higher construction and operational costs in the U.S. compared to TSMC's established facilities in Taiwan. He noted that the company is facing challenges in finding skilled workers and navigating complex local regulations, which have already caused delays at its Arizona plant. According to Yang, the decision appears to be a strategic move to secure access to the U.S. market and hedge against geopolitical risks, particularly the ongoing tensions between China and Taiwan. He argued that without strong encouragement from the U.S. government, which views advanced chip manufacturing as a matter of national security, TSMC would likely have kept its most advanced production lines in Asia. The analyst concluded that while the investment may strengthen the U.S. semiconductor supply chain, it is a politically motivated gamble that could strain TSMC's profitability for years to come.