Taiwan Semiconductor Manufacturing Co. Ltd. TSM jumped 4.68% to $242.19 in overnight trade following confirmation from Taiwanese officials that the world’s largest contract chipmaker is exempt from President Donald Trump‘s proposed 100% tariffs on semiconductor chips.
Taiwan Officials Confirm TSMC Exemption
“Because Taiwan’s main exporter is TSMC, which has factories in the United States, TSMC is exempt,” National Development Council chief Liu Chin-ching told a parliamentary briefing, according to AFP.
The exemption comes as Trump has threatened 100% tariffs on semiconductor companies not manufacturing in the U.S. TSMC operates fabrication facilities in Arizona as part of a $165 billion investment commitment.
Trump’s Escalating Investment Claims
Trump previously stated TSMC would invest $300 billion in Arizona, up from earlier claims of $200 billion. However, TSMC has only officially committed to $165 billion in U.S. investments.
Renowned analyst Ming-Chi Kuo suggested Trump’s escalating figures serve as “laying the groundwork for upcoming semiconductor tariffs,” positioning the inflated numbers as negotiation tactics.
Market Impact Amid Trade Tensions
The tariff exemption provides crucial clarity for investors as TSMC supplies chips to major U.S. companies, including Apple Inc. AAPL and NVIDIA Corp. NVDA.
TSMC CEO CC Wei previously acknowledged that U.S. tariffs create “indirect headwinds” but maintained that AI chip demand “consistently outpaces supply,” supporting the company’s strategic positioning despite trade uncertainties.
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