Trump Announces 100% Tariffs on Semiconductors, but TSMC's Stock Soars to Sky-high Levels
U.S. President Trump said on the 7th that he would impose tariffs as high as 100% on all chips and semiconductors imported into the U.S., but if manufacturers commit to building factories in the U.S. or are currently building factories in the U.S., they will not be subject to tariffs. The news caused the stock price of Taiwan's major semiconductor manufacturer TSMC to soar to sky-high levels.
U.S. President Trump said on the 7th that he would impose tariffs as high as 100% on all chips and semiconductors imported into the U.S., but if manufacturers commit to building factories in the U.S. or are currently building factories in the U.S., like many companies are doing now, there will be no tariffs. If for certain reasons, the commitment to build a factory in the U.S. is not fulfilled, the U.S. may later collect the relevant tariffs retroactively.
He also mentioned that Intel had previously moved to other places, especially Taiwan, but now many chip companies are returning to the U.S. Trump also announced with Apple CEO Cook at the White House an investment plan of $100 billion by Apple, focusing on bringing more manufacturing back to the U.S.
He continued to mention that in addition to Apple, several companies have recently announced expanded investments in the U.S., including TSMC, which will invest $300 billion (approximately NT$8.97 trillion) in Arizona to build the world's largest chip factory. However, TSMC responded that it has no comments on this, and the relevant information will be based on the company's official announcements.
Taiwan's Director of the National Development Council, Liu Jingqing, stated on the 7th during an interview that there are three models available for the industry: building factories in the U.S., mergers and acquisitions, or cooperation. In addition, due to the same tariff starting point, there is confidence in the semiconductor industry in Taiwan, and the industry itself also has high confidence.
Liu Jingqing said that he has discussed with industry players multiple times, and major semiconductor companies believe that they can adjust their global layout accordingly. Although some companies only operate in Taiwan, they believe that the competitiveness of Taiwan's semiconductor industry is strong enough. If all competitors face the same tax rate and starting line, there will not be much competitive difference. Especially, the resilience of Taiwan's semiconductor industry is very strong, almost the strongest in the world.
The news about Trump's 100% tariff on chips also boosted the stock market, with the general market view being that it is a positive message for TSMC. On the 7th, TSMC's stock price rose strongly, reaching a new high of NT$1,180. Its market value increased by NT$1.42 trillion.
Liu Jingqing said that TSMC has already established a factory in the U.S., and also has a factory in Oregon, which is currently a positive factor. However, experts in the semiconductor industry analyzed that TSMC's continuous active investment in the U.S. has limited impact. TSMC's performance in advanced process yield remains outstanding and continues to lead, but it is still necessary to pay attention to the U.S. semiconductor tariffs and whether they will affect the proportion of local production in Taiwan's semiconductor supply chain.
Sources: rfi
Original: www.toutiao.com/article/1839804895632396/
Statement: This article represents the views of the author.