Zinger Key Points
- Taiwan pledges support for TSMC as Trump threatens chip tariffs, aiming to protect its key semiconductor industry.
- TSMC plans up to $42B in 2025 capex, stock surged 73% in 12 months as Taiwan remains vital to Apple and Nvidia supply chains.
- Get Pro-Level Earnings Insights Before the Market Moves
Contract chipmaker Taiwan Semiconductor Manufacturing Co TSM can soon heave a sigh of relief as Taiwan’s government promised to consider possible support for the domestic industry over tariff threats by U.S. President Donald Trump, Reuters cites Premier Cho Jung-tai Wednesday.
Taiwan will weigh additional cooperative plans and assistance programs to resolve the tariff woes.
Also this week, the Taiwan economy ministry told Reuters that the semiconductor business between Taiwan and the U.S. is a mutually beneficial model for both sides given the high level of interconnectivity of the semiconductor ecosystem.
Also Read: Xerox Q4 Earnings: Revenue Beat, $334 Million In Free Cash Flow, Issues Cautious FY25 Outlook
Trump had verbally attacked Taiwan during his campaign days, flagging the lack of a defense agreement between the countries. He alleged the island of undermining the U.S. chip industry.
Additionally, the U.S. tech sector got a jolt from the emergence of Chinese artificial intelligence upstart DeepSeek, which said it could build AI models rivaling OpenAI at a fraction of the cost.
Home to Taiwan Semiconductor, a key contract chipmaker, the island is a key link in the supply chain for companies like Apple Inc AAPL and Nvidia Corp NVDA.
Trump continued his MAGA rhetoric threatening to impose tariffs on imported chips, pharmaceuticals, and steel.
The chipmaker’s total U.S. investment now stands at $65 billion.
Taiwan Semiconductor earmarked fiscal 2025 capex of $38 billion—$42 billion versus fiscal 2024 capex of $29.8 billion. Taiwan’s trade surplus with the U.S. surged 83% in 2024, with exports to the U.S. reaching $111.4 billion.
Taiwan Semiconductor chief C.C. Wei called the U.S. sanctions “manageable.”
Taiwan Semiconductor surged over 73% in the last 12 months. Investors can gain exposure to the stock through Avantis Emerging Markets Equity ETF AVEM and Capital Group Global Growth Equity ETF CGGO.
Price Action: TSM stock traded higher by 1.67% to $205.78 at the last check on Wednesday.
Also Read:
Photo by wakamatsu.h via Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
