US Semiconductor Tariffs Loom: Will TSMC Remain Unscathed?

As US Announces New Semiconductor Tariffs, Will Taiwan's TSMC Weather the Storm, or Will Market Sentiment Drive Stock Prices Down?

Reuters reports that former US President Donald Trump announced on December 12th (US Eastern Time) the upcoming release of Washington's latest policy on semiconductor tariffs, set to be unveiled on December 14th. This announcement has sparked lively debate among Taiwanese internet users, particularly on the popular online forum, PTT.

Many online commenters suggest the impact on Taiwan's semiconductor industry may be limited. They point out that a significant portion of Taiwan's semiconductor exports are directed towards Asian assembly plants. One user argued that TSMC, a dominant player, holds a "strong second-party" position and could potentially pass on any added costs to its clients. The consensus is that it is unlikely the tariffs will directly impact TSMC.

However, opinions vary significantly. Some netizens echoed the sentiment of, "Don't buy (the products)," while others expressed concerns, emphasizing the importance of not underestimating Trump's ability to follow through with his policies. Overall, despite differing views on the tariffs' actual impact, many remain worried about potential shifts in market sentiment, which could negatively affect stock price movements.

One PTT user elaborated that while Trump is releasing the tariff policy, the core of the problem might be different. They explained that semiconductor chips exported from Taiwan often go to countries like India, China, and Vietnam for assembly into complete electronic products, which are then exported to the US. The user further indicated that under the current US system, it would be challenging to impose tariffs directly on semiconductors. The original poster's warning emphasized the importance of this understanding to avoid poor investment decisions in the event of a market downturn.