TSMC Resilience Amid Policy Shifts
Investing.com — TSMC's (Taiwan Semiconductor Manufacturing Company) stock is unlikely to face significant disruption from policy shifts under the incoming Trump administration, according to analysts.
Despite investor concerns about tariffs and potential changes to the Chips Act, the chipmaking giant is well-positioned to weather these challenges.
Analysts believe the direct impact of tariffs on TSMC would be minimal, as the company can pass on costs to customers and has limited direct exports of wafers to the U.S. While a drop in overall unit demand could have some negative effects, they are expected to be manageable.
> “The direct impact of tariffs on TSMC will be quite limited, since TSMC is likely to pass on any tariffs to its customers and also doesn’t export many wafers directly to the US,” a JP Morgan analyst wrote.
On the Chips Act, which incentivizes semiconductor manufacturing in the U.S., analysts suggest that even if support is fully withdrawn, TSMC would likely scale back its U.S. investments without facing substantial repercussions. Similarly, amendments favoring domestic players like Intel (NASDAQ: INTC) could create minor headwinds but are unlikely to disrupt TSMC's competitive edge significantly.
TSMC is projected to be the largest producer of advanced silicon in the U.S. by 2028, reinforcing its role in the global semiconductor supply chain. Analysts warn that major alterations to the Chips Act could hinder the broader goal of increasing domestic chip production.
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