TSMC stock soars after US tariff exemption

TSMC's stock skyrockets as US investment secures a tariff exemption.

TSMC Surges After Tariff Exemption Announcement

Shares of Taiwan Semiconductor Manufacturing Co. reached a record high, climbing nearly 5% to NT$1,180. This surge follows the news that TSMC will not face a proposed 100% US tariff on semiconductor imports due to its investment in the US, including substantial projects in Arizona. TSMC's commitment to invest $165 billion will significantly advance its US operations, while also supporting the domestic chip market. Investors responded positively, leading to a spike in foreign equity inflows and a rise in the Taiwan dollar. Experts suggest this exemption removes uncertainty for TSMC, which constitutes about 40% of Taiwan's benchmark stock index. In contrast, other global chipmakers must consider their positions in the wake of potential tariffs and may need to establish or expand their US bases to stay competitive. Malaysia's chip industry seeks clarity amid concerns over the tariff's impact on its operations.

The exemption from Trump's proposed tariff illustrates the delicate balance between US policies and global tech industries. As TSMC enhances its American footprint, it signals to competitors the necessity of local investment. This trend may reshape global manufacturing, compelling companies to respond strategically to US economic pressures. Furthermore, as AI demand escalates, TSMC's pivotal role could strengthen its market position and influence future trade negotiations. This situation highlights how geopolitical strategies increasingly intersect with technological advancements, reshaping the landscape for investors and companies alike.

Highlights

The evolving landscape of chip manufacturing signals significant changes for global technology.