Trump Tariffs Won't Hurt TSMC, Says Taiwan Official As $100 Billion US Investment And Tariff Exemption Shield Chip Giant

Taiwan's top economic planning official said the Donald Trump administration's tariff threats on semiconductors would have minimal impact on Taiwan Semiconductor Manufacturing Co. TSM, citing the chipmaker's massive U.S. investments, global dominance in AI chip production and the tariff exemptions.

Taiwan Says TSMC Has Minimal Exposure To Tariffs

In an interview with Nikkei on Monday, Liu Chin-ching, head of Taiwan's National Development Council and a TSMC board member, said that the world's largest contract chipmaker sells just 1% of its semiconductor components directly into the U.S.

"TSMC is investing directly in the U.S., so only 1% of its semiconductor components are sold directly there," Liu said.

Liu noted that 75% of Taiwan's exports would remain unaffected by U.S. tariffs, with most of the rest already subject to duties, such as steel and aluminum.

He also confirmed that Taiwan is negotiating with U.S. states like Arizona and Texas to secure tax incentives for Taiwanese companies building facilities in America.

TSMC Tariff Exemption And US Expansion

Earlier this year, Taiwanese officials confirmed TSMC's exemption from Trump's 100% semiconductor tariffs due to its ongoing U.S. manufacturing expansion.

The company has also announced a $100 billion investment in U.S. fabs to bolster American chip supply chains.

Previously, TSMC CEO CC Wei has warned that while tariffs won't directly affect exports, they could raise costs for customers, potentially softening demand.

AI Chip Boom And Strategic Partnerships

Despite trade tensions, TSMC continues to dominate global chip production. The company posted second-quarter revenue of $31.7 billion, up 38.6% year-over-year, beating Wall Street forecasts.

Profits reached $13.03 billion, or $2.47 per share, also topping estimates.

Earlier this month, Nvidia Corporation NVDA CEO Jensen Huang visited Taiwan to finalize six new chip product deals, underscoring TSMC's critical role in powering the AI boom.

Taiwan Eyes Talent And Tech Growth

During the interview, Liu said Taiwan is also expanding its global recruitment push, planning to allow graduates from 1,500 top universities to work in Taiwan without prior overseas experience, up from the current 500.

He highlighted opportunities in AI servers and advanced semiconductor roles.

Taiwanese companies can provide accommodative working environments and generous benefits, Liu said, while underscoring the deepening Taiwan-Japan tech cooperation at the Japan-Taiwan Innovation Summit in Tokyo.

Price Action: On Tuesday, the stock rose 1.35% in regular trading, closing at $238.72, according to Benzinga Pro.

Benzinga's Edge Stock Rankings indicate that TSM continues to display a strong price trend across short, medium and long-term. More performance insights are available here.