Why Taiwan Semiconductor Manufacturing (TSM) Shares Are Trading Higher Monday

Taiwan Semiconductor Manufacturing Co., Ltd. TSM shares are trading higher on Monday following a report suggesting the U.S. will allow South Korean and Taiwan chip manufacturers to keep their operations in China.

What To Know:

According to a Wall Street Journal report, the Biden administration will allow Taiwan Semiconductor and other major semiconductor manufacturers to maintain and expand their operations in China without penalty resulting from the U.S. export controls that were put in place last October.

The report indicates that Alan Estevez, undersecretary of commerce for industry and security, said the Biden administration intended to extend existing exemptions from a U.S. export-control policy for the foreseeable future.

Taiwan Semiconductor and other semiconductor manufacturers operating in China initially received one-year exemptions from the U.S. export-control policy, which were set to expire in October.

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TSM Price Action: According to Benzinga Pro, Taiwan Semiconductor shares were trading up 4.3% at $107.18 at the time of publication.

Photo: Courtesy of Taiwan Semiconductor Manufacturing Co