Taiwan Minister Shrugs Off US Tariffs, Says Taiwan Semiconductor Will Thrive While Samsung Takes The Hit

Taiwan Minister of Economic Affairs J.W. Kuo said the U.S. tariffs did not bother Taiwanese manufacturers, highlighting its leverages, notably its semiconductor ecosystem.

Kuo emphasized the U.S. dependence on Taiwan to boost its microchip manufacturing capacities, the Taipei Times reported on Monday, citing the minister’s interview.

Kuo expects Taiwan Semiconductor Manufacturing Co TSM to maintain its moat over the next decade citing any tariff upsurge would primarily affect US customers instead of the foundry.

Also Read: Taiwan Semiconductor Commits $15 Billion To Chip Expansion, Approves Dividend

Kup expects Samsung Electronics Co SSNLF to bear the maximum brunt of the tariff policies due to its lack of advanced semiconductor production capacity.

Taiwan has submitted a position paper under Section 232 of the U.S. Trade Expansion Act to define the “complementary relationship” between Taiwan and the U.S. in terms of trade and technology and adopted policies to prevent illegal transshipments, Kuo told the Taipei Times.

Trump administration on April 2 announced that it would slap “reciprocal” tariffs on global trading partners of 32%, 25%, and 24% tariffs on goods from Taiwan, South Korea, and Japan to encourage companies to manufacture their products in the US. However, President Trump recently paused the policy for 90 days.

Reportedly, Taiwan Semiconductor will construct nine new advanced wafer manufacturing and packaging factories by 2025.

It plans to build nine new factories, including eight wafer fabrication plants and one advanced chip packaging factory.

The contract chipmaker expects to see 60% year-over-year growth in chip shipments with the 3-nanometer process.

Price Action: TSM stock closed at $193.50 on Monday.

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