Taiwan Semiconductor Shares Are Up Today: What's Going On?

Taiwan Semiconductor Manufacturing Company Ltd. TSM shares were trading higher Monday following an announcement by the Biden administration regarding a trade investigation into China’s semiconductor policies, particularly concerning “legacy” semiconductors.

What To Know: The investigation, known as the “Section 301” probe, could lead to higher U.S. tariffs on these components and aims to counter China’s state-driven semiconductor industry expansion according to Reuters.

The probe is part of a broader U.S. effort to limit China’s influence in the semiconductor sector, including increased export restrictions on advanced chips and equipment. The U.S. has also imposed a 50% tariff on Chinese semiconductors starting Jan. 1, with the possibility of further tariff increases. The investigation will evaluate the implications of Chinese semiconductors on critical industries, including defense and automotive.

China’s Commerce Ministry has condemned the U.S. investigation, stating it will disrupt global semiconductor supply chains. In retaliation, China has restricted exports of key minerals, such as gallium and germanium, essential for chip manufacturing and advanced technologies.

TSMC shares are rising in response to these developments as the market anticipates reduced competition from Chinese semiconductor manufacturers, potentially benefiting other global players in the industry.

TSM Price Action: Taiwan Semiconductor shares closed 5.16% higher at $207.36, according to Benzinga Pro.