Taiwan's TSMC Shares Climb After Trump’s 100 Percent Chip Tariff Exemption

(MENAFN) Shares of Taiwan Semiconductor Manufacturing Corporation (TSMC), the globe’s top semiconductor producer, jumped 5% Thursday following Taiwan’s announcement that the company has been granted an exemption from the 100% chip tariff recently declared by US President Donald Trump.

Liu Chin-ching, minister overseeing the National Development Council, confirmed to media that “TSMC is exempted from the chip tariffs because it has set up plants in the US.”

Regarding other Taiwanese chip manufacturers potentially impacted by the tariffs, Liu remarked they “shall continue to stay ahead” if their rivals face the same duties.

Washington has also expressed interest in continuing tariff discussions with Taiwan, Liu added.

Despite the challenges posed by the elevated tariffs, Taiwan’s government projects a robust 3.1% economic growth rate for 2025, according to Liu’s statement.

Liu’s remarks came hours after President Trump revealed plans for imposing “a very large tariff” on chips and semiconductors, estimating the rate at “approximately 100%,” without providing a timeline for implementation.

“But if you're building in the United States of America, there's no charge, even though you're building and you're not producing yet, in terms of the big numbers of jobs, and all of the things that you're building. If you're building, there will be no charge," Trump said.

Taiwan dominates the semiconductor sector, producing over half of the world’s chips and nearly all advanced semiconductor products on its soil.

In an effort to dodge steep tariffs, TSMC announced in March a massive $100 billion investment to establish semiconductor fabrication plants in the US.

While the US currently enforces a 20% tariff on Taiwanese goods, Taiwan’s leadership has described the new tariff as “provisional,” signaling ongoing negotiations with Washington aimed at reducing the rate.

Lai Ching-te voiced optimism that the tariff might be reduced further after a final deal is concluded.

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