Trump Administration Negotiates New Trade Deal with TSMC, Reducing Tariff to 15%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5h ago
0mins
Source: seekingalpha
- Trade Agreement Progress: The Trump Administration has reached a new trade deal with Taiwan, requiring TSMC to build five new manufacturing sites in the U.S., which is expected to significantly enhance domestic semiconductor production capacity and bolster national security.
- Tariff Adjustment: The new agreement reduces the tariff on goods exported from Taiwan from 20% to 15%, alleviating cost pressures on TSMC and other Taiwanese companies, thereby enhancing their competitiveness in the U.S. market.
- Market Reaction: TSMC shares rose 1.4% during early afternoon trading on Monday, reflecting positive market expectations regarding the new agreement, which may further boost investor confidence and shareholder returns.
- National Security Consideration: Due to national security concerns, semiconductors and other electronic products currently enjoy tariff exemptions, and the Trump Administration may consider excluding companies from Section 232 tariffs if they significantly invest in U.S. facilities, incentivizing more firms to invest domestically.
Analyst Views on TSM
Wall Street analysts forecast TSM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSM is 348.25 USD with a low forecast of 290.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 323.630
Low
290.00
Averages
348.25
High
400.00
Current: 323.630
Low
290.00
Averages
348.25
High
400.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based company mainly engaged in the provision of integrated circuit manufacturing services. The integrated circuit manufacturing services include process technology, special process technology, design ecosystem support, mask technology, 3DFabricTM advanced packaging and silicon stacking technology services. The Company has completed the transfer and mass production of 5nm technology, and is engaged in the research and development of 3nm process technology and 2nm process technology. The product application range covers the entire electronic application industry, including personal computers and peripheral products, information application products, wired and wireless communication system products, servers and data centers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
