Morgan Stanley: The exemption from U.S. chip tariffs meets expectations, maintaining "Overweight" rating on Taiwan Semiconductor and Taiwanese stocks
U.S. President Trump announced on Wednesday that a tariff of approximately 100% will be imposed on "all chips and semiconductors entering the United States," but companies producing in the U.S. will be exempt. In response, Morgan Stanley released a research report stating that this tariff exemption aligns with the bank's baseline expectations, as TSMC's commitment to invest in U.S. wafer fabs should qualify for tariff exemptions or grace periods, which is better than what most investors feared. Morgan Stanley noted that TSMC still plans to invest $16.5 billion in capital expenditures for its U.S. operations through 2030. The bank maintains an "Overweight" rating on TSMC's stock listed in Taiwan, calling it its preferred stock with a target price of NT$1,388. Morgan Stanley added that, aside from TSMC, it remains to be seen whether other major foundries in Greater China will be subject to tariffs, as their businesses are more focused on mature process nodes, where the U.S. has achieved self-sufficiency through domestic IDM manufacturers (such as Texas Instruments). For broader tech demand, the exemption of tariffs on TSMC chips should alleviate market concerns regarding tech demand
According to the Zhitong Finance APP, U.S. President Trump announced on Wednesday that he would impose approximately 100% tariffs on "all chips and semiconductors entering the United States," but would exempt companies that produce in the U.S. In response, Morgan Stanley released a research report stating that this tariff exemption aligns with the bank's baseline expectations, which suggest that TSMC's commitment to invest in U.S. wafer fabs should qualify for tariff exemptions or grace periods, which is better than what most investors feared. Morgan Stanley noted that TSMC still plans to invest $165 billion in capital expenditures for its U.S. business through 2030. The bank maintains an "overweight" rating on TSMC's stock listed in Taiwan, calling it its preferred stock, with a target price of NT$1,388.
Morgan Stanley added that, aside from TSMC, it remains to be seen whether other foundries in Greater China will be subject to tariffs, as their businesses are more focused on mature process nodes, which U.S. IDM manufacturers (such as Texas Instruments) have already achieved self-sufficiency in. For broader technology demand, the exemption of tariffs on TSMC chips should alleviate market concerns regarding technology demand
