The United States’ constantly-evolving tariff policy continues to leave the world on pins and needles. While nothing has been officially announced, the subject of tariffs targeting TSMC chips remains an elephant in the room. Key figures from Taiwan’s government, the TSMC board, and the U.S. government weigh in on the likelihood and impact of potential tariffs targeting Taiwanese chips.
Taiwan’s Economic Ministry plans to send a delegation led by Deputy Minister Cynthia Kiang (江文若) to Washington Tuesday to establish clearer lines of communication with the Trump Administration. Economics Minister Kuo Jyh-huei (郭智輝) posited that Taiwan being considered at all as a target for tariffs is likely due to a miscommunication, listing Taiwan as one of the United States’ most advantageous trading partners. To that end, the delegation’s duty will be to provide better explanations to people around Trump.
TSMC’s response will likely be clarified after the shareholders’ first U.S. board meeting at the Arizona Factory February 11, local time. The market is currently waiting to see how the board will address the possibility of tariffs, with current speculation revolving around different ways to expand current U.S. market investments in exchange for tariff reductions. Analysts in both the U.S. and Taiwan have pointed out how raising tariffs would likely be a lose-lose situation for American companies and Taiwanese chip manufacturers.
The unease around tariffs has also been matched by American lawmakers, such as California State Representative Judy Chu. After attending an event for Los Angeles wildfire relief, during which she personally thanked the Taiwanese government for donations, Chu said she felt tariffs were “the wrong direction.” Chu, a frequent attendee of overseas Taiwanese events, went further, saying the U.S. should strengthen its partnership with Taiwan to ensure a stable semiconductor supply.
TSMC is currently the world's largest contract chipmaker, the North American market accounting for 75% of their total revenue in the fourth quarter of 2024, and the U.S. doesn’t have the capacity to manufacture anywhere near the amount TSMC produces. With the Arizona factory starting production and tariffs on the line, analysts on both sides of the Pacific Ocean are closely monitoring the situation.