TSM.US was exempted from US chip tariffs, and its stock price soared to a record high

The Zhitong Finance App learned that relevant agencies in Taiwan Province of China said that its major chip manufacturers will not be required to pay 100% tariffs imposed by the US on semiconductor imports. This positive news propelled TSM.US stock price to a historic record.

Liu Jingqing, director of the Taiwan Development Commission of China, said, “TSMC was exempted from chip tariffs because it built a factory in the US.” As for other Taiwanese companies that may be affected, Liu Jingqing said that if competitors face the same tariffs, “these companies should continue to maintain their leading edge.”

Liu Jingqing added that the US government has indicated that it is willing to continue negotiations with Taiwan on the tariff issue. Despite the impact of the new tariffs, the Taiwanese authorities maintained the forecast of 3.1% economic growth in 2025.

As a major supplier of high-end chips in the field of artificial intelligence (AI), TSMC led Taiwan's technology exports to achieve an impressive 7.96% increase in the second quarter, reaching a four-year high. The trillion-dollar company weighs nearly 40% of Taiwan's benchmark stock index, and its stock price surged on Thursday while strengthening the market.

After the Taiwanese authorities confirmed that TSMC had been exempted from tariffs, the exchange rate of the new Taiwan dollar rose 0.6% against the US dollar to 29.808, a one-week high.

Liu Jingqing pointed out that Taiwan's second-largest chip manufacturer UMC.US (UMC.US) may also reduce the impact of tariffs through cooperation with Intel (INTC.US).

Khoon Goh, head of Asian research at ANZ Bank, said: “Investors were previously worried about semiconductor tariffs, but the exemption from leading Taiwanese companies alleviated market anxiety. Foreign capital continued to flow in, encouraged by this news, which strengthened the Taiwan dollar. Considering that the dividend remittance flow has basically ended, and the US dollar has resumed its decline, the Taiwan dollar is likely to appreciate further in the short term.”

On Wednesday, Trump announced that he would levy 100% tariffs on imported semiconductors, but at the same time indicated that companies investing in the US like Apple (AAPL.US) would be exempted.

“As long as a factory is built in the US, even if production has not yet started, you can enjoy tax exemptions,” Trump said.

In March of this year, TSMC announced an additional $100 billion investment in the US. It plans to build three new fabs, two advanced packaging facilities, and an R&D center in Arizona, increasing its total investment in the US to 165 billion US dollars.

Although the US recently raised tariffs on Taiwanese goods to 20%, it said it will handle the chip sector separately. This tax rate is still higher than the 15% tariff treatment received by rivals in regions such as Japan and South Korea.

Currently, governments and companies are still urgently evaluating the impact of Trump's series of tariff policies. Samsung Electronics (SSNLF.US) is expected to avoid tariff risks with its chip factory in Texas and its qualifications to participate in the “Made in America Program.” Meanwhile, Malaysia, an important semiconductor exporter, said on Thursday that it has sought clarification from the US on the tariff rules.