Taiwan: Chipmaker TSMC exempted from US tariffs

Taiwan said its leading chip manufacturer will not have to pay a 100% tariff on sales to the US, helping drive Taiwan Semiconductor Manufacturing Co shares to a record.

- YIAN LEE MIAOJUNG LIN

“TSMC is exempted from the chip tariffs because it has set up plants in the US,” Liu Chin-ching, minister in charge of the National Development Council, said in Taipei yesterday. As for other Taiwanese companies that may be affected by the levies, they “shall continue to stay ahead” if competitors face the same charges.

The US government has also expressed willingness to continue negotiations with Taiwan on tariff issues, Mr Liu added. The government still expects economic growth in 2025 to reach the level of 3.1%, despite the impact of the new levies, Mr Liu said.

TSMC manufactures the most advanced chips used in artificial intelligence, and the island’s technology exports drove growth to a blistering 7.96% in the second quarter, the fastest pace in four years. The trillion-dollar company accounts for almost 40% of the weight of Taiwan's benchmark stock index, and its rally yesterday helped lift the broader benchmark.