tsmc ramps up lobbying amid global chip regulation

2025-07-22 tsmc

Washington, Tuesday, 22 July 2025.
Taiwan Semiconductor Manufacturing Company increased its lobbying efforts to $970,000 in the second quarter of 2025. The company’s actions come as governments worldwide implement new semiconductor regulations. These activities coincide with increased trading of TSMC stock by members of congress. Representative Cleo Fields purchased up to $250,000 of $TSM stock on June 25, 2025. The lobbying efforts focus on export controls affecting artificial intelligence hardware and the CHIPS Act.

congressional trading activity

Members of Congress have actively traded $TSM stock, executing eight transactions in the past six months [1]. These trades include two purchases and six sales [1]. Representative Bruce Westerman made a purchase worth up to $15,000 on March 3, 2025, and a sale of the same value on April 21, 2025 [1]. Representative Josh Gottheimer has also traded $TSM stock three times [1]. These actions draw scrutiny given the potential influence policymakers have on the semiconductor industry [alert! ‘no specific details on exact dates or quantities of Gottheimer’s trades’] [1].

expert outlook and market dynamics

Needham issued a ‘buy’ rating for TSMC on July 17, 2025, with analyst Charles Shi setting a target price of $270 [1]. Susquehanna analyst Mehdi Hosseini set a slightly lower target price of $265 on July 14, 2025 [1]. These positive ratings reflect optimism about TSMC’s prospects, driven by strong demand for semiconductors and the company’s leading position in advanced manufacturing [GPT]. Taiwan’s June export orders reached $57.93 billion, surpassing the Ministry of Economic Affairs’ forecast, signaling robust growth in the electronics sector [5].

u.s.-china trade and nvidia’s strategy

The Trump administration’s stance on trade with China is evolving, influencing the semiconductor landscape [2]. Initially focused on punitive tariffs, the administration is now seeking engagement, exemplified by Treasury Secretary Scott Bessent’s comments on negotiations [2]. Nvidia CEO Jensen Huang has emerged as a key figure, successfully lobbying for the export of H20 AI chips to China [6][7]. Huang’s efforts aim to ensure China remains reliant on U.S.-designed hardware, a strategy that has seemingly gained traction with policymakers [6].

nvidia’s h20 chip and market impact

Nvidia’s H20 chip, designed to comply with U.S. sanctions, features 96GB of HBM3 memory and a 700W TDP [7]. The initial ban on H20 sales led to a $4.5 billion inventory write-down for Nvidia in Q1 2025, with projected losses of $8 billion in Q2 [6]. However, the resumption of sales is expected to reverse this trend, potentially boosting Nvidia’s revenue from China by $15 billion in the second half of 2025 [7]. Analysts predict Nvidia’s total China sales to reach $20 billion in fiscal year 2026 [7].

taiwan’s export strength

Taiwan’s June exports demonstrated significant growth, reaching $53.2 billion, a 33.71 increase year-on-year [5]. Electronic components led the surge, hitting a record high of $19.11 billion, up 31.13 from the previous year [5]. Exports to the U.S. also reached a record high of $17.27 billion, marking a substantial 90.89 increase year-on-year [5]. This export momentum is expected to continue, driven by front-loading and the growing demand for AI-related technologies [5].

potential tariff risks

Despite positive trends, potential U.S. tariffs on semiconductors remain a risk [4]. Barclays analysts suggest these tariffs could be implemented gradually or with a differentiated approach, potentially impacting the global supply chain [4]. The Wall Street Journal has also highlighted trade tensions as a neglected risk factor for chip stocks, even amidst the AI-driven surge [4]. These factors introduce uncertainty into the market, requiring investors to closely monitor policy developments [GPT].

Bronnen

semiconductor policy tsmc lobbying