Economic Policy

TSMC’s AI-Driven Profit Surge Exposes America’s Urgent Need to Secure Domestic Chip Independence

By Economics Desk | January 15, 2026

Taiwan’s TSMC reports a stunning 35% profit jump and ramps up investment amid the AI boom—but Washington’s failure to build robust domestic chip manufacturing leaves U.S. national security and economic freedom vulnerable.

As Taiwan Semiconductor Manufacturing Company (TSMC) announces a remarkable 35% surge in quarterly profits driven by booming artificial intelligence demand, it illuminates a pressing strategic vulnerability for the United States: our deep dependence on foreign semiconductor manufacturing. Why Should Americans Care About a Taiwanese Chip Maker’s Windfall? TSMC, the global leader in cutting-edge chip fabrication and crucial supplier to tech giants like Apple and Nvidia, revealed plans to boost its capital spending by nearly 40% this year—reaching up to $56 billion. This aggressive expansion is fueled by skyrocketing demand for AI chips that power everything from cloud computing to autonomous...

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