Taiwan Semiconductor Manufacturing Company (TSM) Stock: TSMC Stock Soars to Record High After US Tariff Exemption News
TLDR
- Taiwan confirmed TSMC is exempt from 100% US semiconductor tariffs due to its American manufacturing investments
- TSMC stock jumped 4.89% to record NT$1,180, marking the largest single-day gain in three months
- The chipmaker’s $165 billion total US investment commitment includes new Arizona facilities and R&D centers
- Taiwan’s benchmark index rose 2.4% with TSMC stock accounting for nearly 40% of its weight
- Other Taiwanese chip stocks like Foxconn and MediaTek also gained on tariff exemption optimism
TSMC stock soared to an all-time high Thursday after Taiwan’s government confirmed the chip giant would avoid crushing US tariffs. The world’s largest contract chipmaker saw its stock price climb 4.89% to NT$1,180.
Taiwan’s National Development Council Minister Liu Chin-ching delivered the news that sparked the TSMC stock rally. “TSMC is exempted from the chip tariffs because it has set up plants in the US,” Liu said during a Thursday briefing in Taipei.
The TSMC stock exemption comes after President Trump announced plans for 100% tariffs on semiconductor imports. However, companies investing in American manufacturing would be spared from these levies.
TSMC’s massive US investment strategy paid off in avoiding the tariff threat. The company committed $165 billion total to American operations, including $100 billion announced in March for additional facilities.
Taiwan Semiconductor Manufacturing Company stock benefits from this strategic positioning. The chipmaker’s Arizona operations became its shield against trade penalties.
TSMC Manufacturing Expansion Shields Stock Performance
The chipmaker’s Arizona operations became its shield against trade penalties. TSMC is building three new fabrication plants, two advanced packaging facilities, and a research center in the state.
Trump specifically cited companies building in America as exempt from tariffs. “If you’re building in the United States of America, there’s no charge,” he said Wednesday.
The TSMC stock exemption news sent ripples through Taiwan’s technology sector. Foxconn shares jumped 4.6% while MediaTek gained 2.6% as investors bet on similar protections.
Taiwan’s benchmark Taiex index rose 2.4%, outperforming regional markets. TSMC stock weight of nearly 40% in the index helped drive the broader gains.
The Taiwan dollar strengthened 0.9% against the US dollar as foreign investment flowed into the market. “Foreign equity inflows on the back of this news have helped pushed TWD stronger,” said Khoon Goh from ANZ Banking Group.
TSMC stock performance reflects investor confidence in the company’s strategic decisions. The chipmaker’s American manufacturing commitment now provides protection from trade tensions.
Taiwan Semiconductor Stock Impact on Broader Chip Industry
Other Asian chipmakers face uncertainty about their tariff status. Malaysia reached out to the US seeking clarity on semiconductor levies affecting its export industry.
Samsung Electronics appears well-positioned with its Texas facilities and participation in Apple’s American Manufacturing Program. The Korean giant could avoid tariffs through its US operations.
United Microelectronics Corp might reduce tariff impact through its Intel partnership, according to Minister Liu. The company is Taiwan’s second-largest chipmaker.
Taiwan Semiconductor Manufacturing Company manufactures the most advanced AI chips that powered Taiwan’s technology exports. The sector drove the island’s economy to 7.96% growth in the second quarter, the fastest pace in four years.
The US previously imposed 20% tariffs on Taiwan goods but treated semiconductors separately. This rate exceeded the 15% secured by Japan and South Korea.
Companies continue assessing the impact of various tariff announcements. Analysts suggest the 100% levies serve as bargaining chips in trade negotiations.
The exemption criteria remain unclear for determining what counts as semiconductor products. Questions persist about whether simply starting construction qualifies companies for relief.
TSMC stock investors had been apprehensive while awaiting tariff decisions. “Investors had been apprehensive while awaiting the tariff rate for semiconductors, but exemptions for Taiwan’s largest company have allayed concerns,” said Khoon Goh.
The TSMC stock record-breaking day reflects investor relief over tariff fears that had weighed on the semiconductor sector. Taiwan Semiconductor Manufacturing Company’s American manufacturing commitment provides ongoing protection.
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