tsmc defies tariff fears with stock surge: why investors are still bullish

2025-08-07 tsmc

Taipei, Thursday, 7 August 2025.
Despite trump’s recent tariff threats on semiconductors, tsmc’s stock jumped 4% to a record high of nt$1180. this surge occurred even with approximately 300,000 shareholders having recently left the market. the stock’s impressive performance signals strong investor confidence in tsmc. analysts suggest the tariff impact may be limited due to tsmc’s strategic investments in us-based manufacturing, potentially qualifying them for tariff exemptions. the stock surge also reflects broader optimism in the taiwanese market.

Market reaction and shareholder dynamics

TSMC’s stock demonstrated resilience, climbing to a new peak despite broader market concerns over potential tariffs [1]. The stock closed at NT$1180, marking a 4.89% increase and a NT$55 rise from the previous close of NT$1125 [1][2]. This surge occurred even as approximately 300,000 shareholders exited the stock since its peak, potentially missing out on significant gains [1]. Approximately 15,110 shareholders had left the week prior [1]. The strong buying interest is evident from the trading data, with foreign investors accounting for 75.60% of the volume [2].

Tariff implications and expert opinions

Trump’s announcement of a potential 100% tariff on semiconductors initially sparked market speculation and a 3.2% drop in TSMC’s stock price on august 5th [1][8]. However, the recent surge suggests a shift in investor sentiment, possibly due to an anticipated exemption for TSMC’s US-based production [1]. Senior semiconductor analyst Lu Xingzhi suggests that TSMC’s chips supplied to Apple in the US would be tax-exempt [8]. First Gold Investment Consulting Chairman Huang Yiting stated that high semiconductor tariffs basically have no impact on TSMC [1].

TSMC’s strategic investments in the U.S.

Trump has repeatedly mentioned TSMC’s investment plans in the United States, stating the company will invest $300 billion to build the world’s largest chip and semiconductor plant in Arizona [7]. While earlier reports indicated a $100 billion investment with additional facilities, Trump’s figure remains significantly higher [6][7]. Trump emphasized his administration wants semiconductors manufactured in the U.S. [5]. He also stated that tariffs would not apply to facilities under construction and not yet in production [8].

Broader market context and future outlook

The overall Taiwan stock market showed positive momentum, rising over 500 points on the same day as TSMC’s surge [1]. Taiwan Stock Exchange index futures also rose 300 points in early morning trading, reaching a temporary quote of 23,717 points [1]. TSMC’s CEO, Wei Zhejia, had previously hinted at the value of holding TSMC stock when it was trading at NT$995 [1]. Investors are now awaiting TSMC’s quarterly earnings report, scheduled for release on october 27, to gain further insights into the company’s performance and outlook [1].

Bronnen

semiconductor tariffs tsmc stock