Taiwan Semiconductor Clocks Massive Q1 Revenue Growth Despite US Tensions

Taiwan Semiconductor Manufacturing Co TSM reported first-quarter revenue growth of 41.6% year-on-year to 839.25 billion New Taiwan dollars ($25.5 billion) on Thursday.

In March, key contract chipmaker chief C.C. Wei announced an additional $100 billion investment in U.S. chipmaking (on top of $65 billion in April 2024)

The investment followed President Trump’s verbal attacks of Taiwan “stealing” the U.S. semiconductor business, leading to massive trade deficits for Washington.

Also Read: Trump’s EU Tariffs Impacts Chip Equipment Giant ASML, Stock Hits 52-Week Low

TSMC is embroiled in the U.S. geopolitical tensions. Trump has slammed Taiwan for the lack of a defense treaty, as the U.S. is a key military backer of Taiwan.

The President had suggested scrapping U.S. subsidies to chipmakers like Taiwan Semiconductor to build fabs in the country to boost its semiconductor position.

Despite the huge U.S. investment commitment, Taiwan Semiconductor reiterated its commitment to domestic investments and keeping advanced tech in Taiwan.

In 2023, Taiwan Semiconductor held 67% of the market share in contracted semiconductor manufacturing and ~80% in advanced technology products. Taiwan Semiconductor accounts for over a third of the Taiwan benchmark’s weight.

Taiwan Semiconductor stock has plunged over 21% year-to-date. Steven Tseng of Bloomberg Intelligence expects the tariffs to indirectly reduce orders for Taiwan Semiconductor-manufactured chips via lower consumer demand. 

Goldman Sachs downgraded Taiwan equities to underweight, citing high exposure to U.S. exports.

Price Action: TSM stock is down 1.33% to $156.64 premarket at the last check on Thursday.

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