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While the United States’ tariff threat looms over many chip firms, TSMC appears unlikely to face significant impacts. This is because only a tiny portion (1%) of its semiconductor sales go to U.S. entities.
**TSMC’s Push Towards Manufacturing in the U.S. Puts It at a Prime Spot to See Exceptions from US Chip Tariffs**
The industry views chip tariffs under Section 232 as “kryptonite” for companies working with the U.S., due to high taxation that squeezes already slim profit margins. TSMC has expressed concerns about potential chip tariffs but, given their investments in America, they might see relaxations. However, a crucial factor is that only 1% of TSMC’s semiconductor products are involved in direct business with U.S. entities.
According to a report by Nikkei Asia, the head of Taiwan’s National Development Council claims US tariffs won’t significantly impact TSMC. This is because its investments have reduced the ratio of chips sourced from Taiwan, and only 1% of total production involves direct business with U.S. entities. Additionally, 75% of Taiwan’s export goods are unaffected by U.S. tariffs, mainly excluding steel and aluminum.
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TSMC is pushing for manufacturing in America to avoid hefty tariffs. As a result, firms like Foxconn, Quanta, Wistron, TSMC, UMC, and others have shifted production volumes from the East to the West. This shows that President Trump’s chip policies have worked, at least in terms of producing in America.
Regarding Section 232 chip tariffs, TSMC is expected to be minimally affected due to its close relations with the Trump administration. However, given the rapidly evolving U.S. government policies, future impacts remain uncertain.
