Why Is Taiwan Semiconductor Stock Trading Higher On Friday?

Taiwan Semiconductor Manufacturing Co TSM reported a topline growth of 48% in April 2025 on Friday.

The Taiwanese contract chipmaker’s monthly revenue was New Taiwan $349.6 billion ($11.6 billion), topping the analyst consensus estimate of a 38% growth, Bloomberg reported on Friday. The stock is trading higher on Friday.

Also Read: Advanced Micro Devices Drops Samsung, Shifts Chip Orders To Taiwan Semiconductor

The topline growth also reflects electronics firms striving to stockpile essential components before global tariffs come into effect.

Taiwan Semiconductor stock declined over 13% year-to-date, coinciding with the beginning of Donald Trump’s presidency.

Since his campaign days, Trump has criticized Taiwan for allegedly stealing the U.S. semiconductor business and generating massive trade deficits for Washington.

Taiwan Semiconductor has pledged to invest an additional $100 billion in U.S. plants on top of its $65 billion in planned investments without any incremental U.S. subsidy.

Additionally, U.S. Secretary of Commerce Howard Lutnick had hinted at the possible dumping of Chips Act grants, which the Biden administration launched to encourage chipmakers to focus on consolidating their domestic semiconductor position by offering them grants.

The chipmaker’s Arizona facility incurred a loss of ~14.3 billion New Taiwan dollars ($441 million) in 2024, marking its most significant loss since its establishment. The losses reflect the repercussions of Washington’s attempt to restructure global semiconductor supply chains through political intervention.

However, recent reports indicated the Trump administration’s plans to revoke a key Biden-era export restriction on AI chips. The rollback targets the “AI diffusion rule.” Washington plans to replace the rule with a simpler framework that targets countries, including Malaysia and Thailand, that divert chips to China.

Price Action: TSM stock traded higher by 2.05% to $178.81 at the last check Friday.

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