TSMC Factories Located in the United States
Other Taiwanese Semiconductor Companies May Be Affected
AFP reported on August 7 that Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest semiconductor foundry, will be exempt from the 100% tariff on semiconductors announced by the Donald Trump administration.
According to the report, Kung Ming-hsin, Minister of Taiwan’s National Development Council (NDC), stated during a parliamentary briefing that “TSMC, a major Taiwanese exporter with manufacturing facilities in the United States, will be exempt from the semiconductor tariffs.”
He went on to say, “Some Taiwanese semiconductor companies may be affected by the 100% tariff, but their competitors will also be subject to the same tariffs. Currently, Taiwan holds a leading position in the global market, and if the frontrunner starts from the same line as its competitors, I believe the frontrunner can continue to stay ahead.”
He also emphasized, “This is a preliminary assessment regarding the impact of the tariffs, and we will continue to monitor the situation and propose short- and mid-term support measures as needed.”
His remarks came after President Trump announced on August 6 (local time) that he would impose itemized tariffs of around 100% on semiconductors. President Trump stated his intention to implement these tariffs but did not specify when they would take effect.
Taiwan produces more than half of the world’s chips. AFP noted that most advanced chips are manufactured in Taiwan. As Nvidia, the leading producer of AI chips, relies primarily on TSMC for chip manufacturing, there have been concerns that tariffs on Taiwanese semiconductors would inevitably impact not only Nvidia but also the broader U.S. big tech sector.
Previously, TSMC announced it would invest an additional $100 billion (approximately 147 trillion won) in the United States, leading to speculation that Taiwan would have an advantage in tariff negotiations with the U.S. However, President Trump imposed a 20% reciprocal tariff on Taiwan. The Taiwanese government stated that the 20% tariff is temporary and that negotiations between the two countries are ongoing.
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