investor buys tsmc shares for $9.5 million amid tariff concerns

2025-04-15 tsmc

Taipei, Tuesday, 15 April 2025.
amidst market turbulence fueled by the ongoing tariff war, one investor, huang hsiang, made a bold move. huang hsiang invested nt$311 million, approximately $9.5 million, in 299 shares of tsmc. the purchase occurred even as tsmc’s stock faced downward pressure, trading at an average of nt$1,042 per share. this significant investment signals confidence in tsmc’s long-term prospects, particularly its crucial role in ai technology, despite short-term market jitters related to trade tensions and tariff uncertainties.

Huang Hsiang’s investment strategy

Huang Hsiang Construction had been strategically investing in ai-related stocks since late 2023 [1][2]. The company initially acquired over a thousand shares of Quanta Computer before gradually increasing its stake in tsmc [2]. According to Huang Hsiang’s fourth-quarter 2023 financial report, it already possessed approximately 125 tsmc shares [1][2]. The recent purchase of 299 shares was intended to average down the cost per share [1]. However, the company didn’t anticipate the market upheaval caused by former U.S. President Trump’s tariff policies [2].

Company’s perspective on tsmc

Despite the immediate market volatility triggered by tariff concerns, Huang Hsiang remains confident in the long-term growth potential of ai technology and tsmc’s pivotal role [1][2].游玉华, the company’s spokesperson, stated that they will continue monitoring market trends and strategically buy shares during dips to strengthen their investment portfolio [1]. This approach reflects a belief in tsmc’s resilience and its capacity to navigate geopolitical challenges [GPT].

Tariff impacts and market reactions

The resurgence of trade tensions, particularly those related to semiconductor tariffs, has injected volatility into the taiwan stock exchange [3][4]. On April 14, the taiex initially surged by nearly 500 points due to optimism surrounding potential tariff exemptions on information and communication technology products [6]. However, the gains were subsequently reversed following reports that former president trump dismissed these exemptions and reaffirmed his intention to impose tariffs on semiconductors and other electronic goods [6][7]. This policy shift caused the taiex to close down by 15.68 points at 19,513.09 [6].

TSMC’s stock performance amid uncertainty

Tsmc’s stock mirrored the broader market’s volatility [5][7]. On April 14, the stock opened at ntd 895 but experienced fluctuations, eventually closing at ntd 865, a decrease of ntd 24 or 2.682 approximately 2.70% [4][7]. This decline eroded tsmc’s market capitalization by ntd 622.3 billion, bringing it down to ntd 22.43 trillion [7]. Foreign investors offloaded 12,576 shares amidst the tariff concerns [7]. Despite the downturn, tsmc’s intraday trading remained active, with a turnover of 5.84 million shares, amounting to ntd 5.167 billion [7].

Analysts’ perspectives on TSMC

Analysts suggest a cautious approach to tsmc, advising investors to consider phased entry strategies given the uncertainty surrounding trump’s policies [4][6]. Concerns over potential tariffs have prompted several foreign institutions to revise their target prices for tsmc shares, with some reducing their targets from over ntd 1,000 to between ntd 880 and ntd 950 [4][6]. The market’s attention is now directed towards tsmc’s upcoming online investor conference scheduled for April 17, where the company is expected to clarify its capital expenditure plans and provide insights into order visibility for the second half of the year [3][4].

Potential impact on mature processes

An analyst at Guode Investment Consulting suggests that mature manufacturing processes may bear the initial brunt if trump’s tariff policies are implemented [5]. Many taiwanese companies operate factories in china, making them vulnerable to these tariffs [5]. While advanced processes may be spared, the analyst recommends investors to remain conservative and avoid hasty decisions, especially given that foreign brokerages have adjusted tsmc’s stock price [5]. The potential for order transfers will depend on the political strategies employed by taiwanese manufacturers [5].

Taiwan stock market overview

On April 15, the taiwan stock market demonstrated resilience, with the taiex opening with gains exceeding 200 points and reaching a high of 19,727 points [3]. Tsmc’s stock price increased by ntd 11 to ntd 876 during the session, contributing to a rise of over 300 points for the taiex, bringing it above 19,800 points [3]. Other stocks, including hon hai and quanta, also saw positive movements, while mediaTek experienced fluctuations around its opening price [3]. The shipping sector also showed gains, with wan hai surging by over 9% to ntd 89 [3].

Bronnen

TSMC Stock Tariff Impact