Customers of Apple and NVIDIA are likely to face a price hike from Taiwan Semiconductor Manufacturing Company 's Arizona chip plant, according to a strategist. "Subsidies will play a big role in helping bridge the gap from an economic standpoint, but there will also be price increases to customers," Abhinav Davuluri, technology equity strategist of Morningstar, tells CNBC's " Squawk Box Asia " Wednesday. "Not only is it a much smaller fab, which reduces the economics, it's also happening in a much higher-cost region," he said. The U.S. plants will be a small fraction of TSMC's total capacity of 12 million wafers in 2020, according to a company press release. TSMC has more than 50% of the global market share and produces the advanced chips in the latest Apple products. While TSMC does most of its manufacturing in Taiwan, U.S. and European lawmakers have questioned about supply in the event of a Chinese invasion. - Sheila Chiang