Taiwan Semiconductor receives exemption from U.S. chip tariffs, stock price soars to a record high

According to the Zhitong Finance APP, relevant institutions in Taiwan Province, China, have stated that its major chip manufacturers will not be required to pay the 100% tariff imposed by the United States on semiconductor imports. This positive news has driven Taiwan Semiconductor Manufacturing Company (TSMC) to reach a historic high in its stock price.

Liu Jingqing, director of the Taiwan Development Council, stated, "TSMC has received a tariff exemption due to its factory establishment in the United States." Regarding other potentially affected Taiwanese companies, Liu Jingqing mentioned that if competitors face the same tariffs, "these companies should continue to maintain their competitive edge."

Liu Jingqing added that the U.S. government has expressed its willingness to continue discussions with Taiwan on tariff issues. Despite facing the impact of new tariffs, Taiwanese authorities still maintain their economic growth forecast of 3.1% for 2025.

As a major supplier of high-end chips in the artificial intelligence (AI) field, TSMC has driven Taiwan's tech exports to achieve an astonishing growth of 7.96% in the second quarter, marking a four-year high. This trillion-dollar company accounts for nearly 40% of the weight in Taiwan's benchmark stock index, and its stock price surged on Thursday, boosting the overall market.

After Taiwanese authorities confirmed TSMC's tariff exemption, the New Taiwan Dollar rose by 0.6% against the U.S. dollar to 29.808, reaching a one-week high.

Liu Jingqing pointed out that Taiwan's second-largest chip manufacturer, United Microelectronics Corporation (UMC), may also mitigate tariff impacts through cooperation with Intel.

Khoon Goh, head of Asian research at ANZ Bank, stated, "Investors were previously worried about semiconductor tariffs, but the exemption for leading Taiwanese companies has alleviated market anxiety. Foreign capital has continued to flow in, strengthening the New Taiwan Dollar. Considering that the flow of repatriated dividend funds has basically ended, coupled with the U.S. dollar resuming its decline, the New Taiwan Dollar may appreciate further in the short term."

On Wednesday, Trump announced a 100% tariff on imported semiconductors but also stated that companies like Apple, which invest in the U.S., could be exempted.

"As long as you build a factory in the U.S., even if it has not yet started production, you can enjoy tax exemption," Trump said.

In March of this year, TSMC announced an additional $100 billion investment in the U.S., planning to build three wafer fabs, two advanced packaging facilities, and a research and development center in Arizona, raising its total investment in the U.S. to $165 billion.

Recently, while the U.S. has raised tariffs on Taiwanese goods to 20%, it has indicated that it will handle the chip sector separately. This tariff rate is still higher than the 15% tariff treatment received by competitors in regions like Japan and South Korea.

Currently, governments and companies around the world are urgently assessing the impact of Trump's series of tariff policies. Samsung Electronics, with its chip factory in Texas and qualification for the "Made in America" program, is expected to avoid tariff risks. Meanwhile, Malaysia, a significant semiconductor exporting country, stated on Thursday that it has sought clarification from the U.S. on tariff details