TSMC exempted from chip tariffs as it has set up plants in the US, says Taiwanese official, hours after US president vows 100% tariffs on foreign-made semiconductors, according to Bloomberg
Shares of Taiwan Semiconductor Manufacturing Corporation (TSMC), the world's largest semiconductor manufacturer, saw a 5% rise Thursday after Taiwan confirmed that the firm got a reprieve from US President Donald Trump's newly announced 100% chip tariff.
“TSMC is exempted from the chip tariffs because it has set up plants in the US,” said Liu Chin-ching, minister in charge of the National Development Council, according to Bloomberg.
About other chipmakers in Taiwan that may be affected by the levies, Liu said that they “shall continue to stay ahead” if competitors face the same charges.
Liu also said that Washington has indicated a desire to carry on with tariff talks with Taiwan.
Despite the effects of the increased levies, the government still anticipates 3.1% economic growth in 2025, according to Liu.
Liu was speaking hours after Trump said the US is going to be putting "a very large tariff" on chips and semiconductors.
The level would be “approximately 100%,” Trump told reporters, although he did not specify the timing of the tariff.
"But if you're building in the United States of America, there's no charge, even though you're building and you're not producing yet, in terms of the big numbers of jobs, and all of the things that you're building. If you're building, there will be no charge," he said.
Taiwan currently holds the lion's share in semiconductor manufacturing, with more than half of the world’s chips and nearly all of the advanced ones manufactured on the island.
To avoid the high tariff rates, TSMC in March announced plans to invest $100 billion in building semiconductor plants in the US.
While the US imposed a 20% tariff on Taiwan, Taiwan's leader called the new tariff "provisional," adding that talks with Washington towards lowering the rate are continuing.
Lai Ching-te expressed hope that the tariff could be lowered further once a final agreement is reached.
