On Aug. 6, United States President Donald Trump unveiled his policy on semiconductor tariffs. The announcement was widely anticipated in Taiwan, given the importance of semiconductors to its export mix. "We’ll be putting a tariff of approximately 100 percent on chips and semiconductors," Trump said at a White House event, but there was a caveat. "If you have made a commitment to build or are in the process of building, as many are, there is no tariff," he said. The policy was quickly described as "a carrot and a stick" because it both applied pressure and offered an incentive. Attending the event with Trump was Apple CEO Tim Cook, who announced that his company planned to boost its investment in the U.S. by US$100 billion, bringing Apple’s total investment there to US$600 billion. Soon after the news surfaced, Apple shares and TSMC’s depositary receipts rose by more than 3 percent, and the next morning (Aug. 7) in Taiwan, TSMC shares rocketed to an all-time high of NT$1,180. Shares of Taiwan-based GlobalWafers, one of the world’s three biggest producers of silicon wafers, rose by the maximum 10 percent, and the Taiex rose above the 24,000-point level at one point. Analysts felt that major tech players with investments in the U.S., such as TSMC, Apple, and Nvidia, could breathe a sigh of relief, and that more investment pledges might be forthcoming. A Morgan Stanley report concluded that TSMC, the world’s dominant contract chipmaker, would be exempt from tariffs or face more lenient conditions because it had committed to investing US$165 billion in the U.S. to build six wafer fabs, two packaging and testing plants, and an R&D center. Also seen as safe were South Korean chipmakers Samsung Electronics and SK Hynix, which have presences in the United States. Samsung has a manufacturing facility in Texas for advanced nodes that faced delays because of a lack of business, but has now received an order from Tesla to produce a new generation of ADAS (advanced driver-assistance system) chips. The market was concerned, however, for other chip contractors, especially those specializing in more mature processes, such as Taiwan-based UMC (United Microelectronics) and Vanguard International Semiconductor Corp., and China-based SMIC (Semiconductor Manufacturing International Corporation). According to Morgan Stanley’s analysis, those manufacturers are not likely to be prioritized for tariff-exempt status because the United States is already self-sufficient in mature process technologies. UMC said it would closely monitor details related to the tariff announcement but noted that it was partnering with Intel to build a 12-nanometer FinFET plant in Arizona, expected to enter mass production in 2027. That could give UMC an out. If these semiconductor vendors, whether they use advanced or mature processes, sell chips to clients, which then process and resell them to vendors that have decided to build a production facility in the United States, they should, based on Trump’s current logic, be able to get a temporary exemption from the tariffs. Outside observers were concerned that AI servers made in Taiwan and exported to the U.S. would be hit hard by tariffs, especially given that Taiwan makes 80 percent of the world’s AI servers. Analysts believed, however, that if Trump’s caveat applied to terminal system manufacturers, Nvidia and other U.S. vendors might be able to at least temporarily avoid tariffs. But many of these assessments remain educated guesses. Critical details on the semiconductor tariffs have yet to be announced, including when they take effect, how country of origin will be defined, and the threshold that needs to be met to be tariff-exempt. At the same White House event, Apple’s Cook announced a new American Manufacturing Program that will partner with companies such as Corning, Applied Materials, TSMC, GlobalWafers America (GWA), Texas Instruments, Samsung, and Broadcom. Taiwan-based GlobalWafers said subsidiary GWA will supply Apple with 300-millimeter silicon wafers and join with Apple on a cooperative venture to increase demand. The plant producing the silicon wafers, located in Sherman, Texas, is the first of its kind in the United States and a critical source of the key semiconductor material. GlobalWafers Chairperson Doris Hsu (徐秀蘭) said GWA products will be used in the future in classic products such as the iPhone and iPad. Because of these developments, TSMC shares soared nearly 5 percent and GlobalWafers ended 10 percent higher in trading in Taipei on Aug. 7, while the Taiex gained 2.37 percent, or more than 500 points. Yet, clouds of uncertainty remain due to the lack of details on the tariff policy. Given that uncertainty and Trump’s penchant for flip-flopping, high-tech vendors are not yet ready to completely let down their guard despite what appears to be a short-term reprieve.

100% US Tariffs on Semiconductors, with Exemptions — Is TSMC Safe?｜Industry｜2025-08-13｜web only

On August 6, 2025, U.S. President Donald Trump announced a proposed 100% tariff on semiconductors and chips, with an exemption for companies that have committed to building manufacturing facilities in the U.S. The policy, described as a 'carrot and a stick,' offers tariff relief to firms investing in American production. Apple CEO Tim Cook announced a $100 billion increase in U.S. investment, bringing Apple’s total to $600 billion, and pledged to expand its American Manufacturing Program with partners including TSMC, GlobalWafers America, Samsung, and Broadcom. TSMC, which has committed $165 billion to build six wafer fabs, two packaging and testing plants, and an R&D center in the U.S., is expected to be exempt due to its investment. Similarly, Samsung and SK Hynix, with U.S. operations, are seen as relatively safe. However, companies like UMC and SMIC, especially those producing in mature processes, face uncertainty as the U.S. is already self-sufficient in those areas. GlobalWafers’ subsidiary GlobalWafers America (GWA) will supply 300-millimeter silicon wafers to Apple in Sherman, Texas, and both TSMC and GlobalWafers saw significant share gains on August 7. Analysts remain cautious due to the lack of clarity on enforcement details, including tariff implementation date, origin definition, and exemption thresholds.