tsmc weathers us equity stake offer, stock surges
Taipei, Monday, 25 August 2025.
Taiwan Semiconductor Manufacturing’s stock jumped after the U.S. government decided against taking an equity stake. The news followed TSMC Chairman Mark Liu’s meeting with NVIDIA CEO Jensen Huang. Investors had worried about U.S. influence. The Taiwan stock market reacted strongly. TSMC shares rose by 30 yuan, reaching 1165 yuan. This pushed the market up nearly 500 points, retaking the 24,000-point level. TSMC might gain further, analysts say. The Federal Reserve’s dovish stance also helped.
us chips act influence
TSMC’s decision to remove Chinese-made equipment from its 2-nanometer chip factories highlights the impact of the U.S. CHIPS Act [3]. This act restricts companies receiving U.S. subsidies from purchasing equipment from specific foreign entities [3]. TSMC emphasizes its global procurement strategy and risk management [3]. Mass production of TSMC’s 2-nanometer process is scheduled for the second half of this year [3]. TSMC will not comment on market rumors [3].
market impact and analysis
The Taiwan Stock Exchange opened at 24108.81 points, with TSMC contributing 241.9 points, and the electronics sector up 2.47% on August 25, 2025 [1]. Analysts have raised the target price for TSMC to between NT$1288 and NT$1600 [1]. An analyst at Global Securities stated that the U.S. government’s move signals strong support for companies like TSMC [3]. TSMC’s stock rose following the U.S. government’s decision, increasing investor confidence [3].
geopolitical considerations
Concerns persist regarding geopolitical risks. Chen Feng-hsin from Yahoo warned that the U.S. might still try to influence TSMC [2]. Commerce Secretary Rutnick noted the geographical proximity of Taiwan to China, emphasizing U.S. unease [2]. TSMC reportedly preferred to return $6.6 billion in subsidies rather than allow the U.S. government to acquire shares [2]. The U.S. government’s initial plan involved taking a stake in Intel, offering $10.9 billion in subsidies for approximately 10% equity [2].
tsmc’s manufacturing and expansion
TSMC’s annual capital expenditure is substantial, ranging from $38.1 billion to $40 billion [2]. SEMICON Taiwan international semiconductor exhibition will feature global semiconductor executives from TSMC, ASE, NVIDIA, Broadcom, Samsung, and SK Hynix [3]. The exhibition is expected to grow by more than 20% compared to last year [3]. TSMC’s CEO, C. C. Wei, confirmed that the U.S. government would not acquire TSMC shares [1].