Trump to Discuss Arms Sales to Taiwan and Jimmy Lai's Imprisonment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 18 hours ago
0mins
Source: CNBC
- Taiwan Arms Sales Controversy: Trump stated he would address U.S. arms sales to Taiwan at the upcoming Beijing summit, a move that could escalate tensions between the U.S. and China, especially given China's accusations of violating the 'one-China principle'.
- Taiwan's Special Defense Budget: Taiwanese lawmakers approved a $25 billion special defense budget, significantly lower than the $40 billion requested by the government, indicating a funding shortfall that may undermine Taiwan's defense capabilities against increasing Chinese military threats.
- Focus on Jimmy Lai's Case: Trump reiterated his call for the release of Hong Kong media tycoon Jimmy Lai, who was sentenced to 20 years for colluding with foreign forces, a stance likely to provoke strong opposition from Beijing and further complicate U.S.-China relations.
- Risks in U.S.-China Relations: Experts warn that any perceived softening of Trump's stance on Taiwan during the summit could be interpreted as a concession to China, potentially emboldening Beijing to take more aggressive actions that threaten Taiwan's autonomy.
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Analyst Views on TSM
Wall Street analysts forecast TSM stock price to fall
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 404.540
Low
63.24
Averages
313.46
High
390.00
Current: 404.540
Low
63.24
Averages
313.46
High
390.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based integrated circuit foundry service provider. The Company is primarily engaged in integrated circuit manufacturing services. It offers advanced process technologies, specialised process solutions, advanced photomask and silicon stacking, and packaging-related technologies, while supporting a comprehensive design ecosystem. The Company's products serve diverse electronic sectors including artificial intelligence, high-performance computing, wired and wireless communications, automotive and industrial equipment, personal computing, information applications, consumer electronics, smart internet of things, and wearable devices.
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.
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- Historic Investment: The total investment for this project has reached $165 billion, making it the largest foreign direct investment greenfield project in U.S. history, showcasing TSMC's long-term commitment to the U.S. market and its significance in the global supply chain.
- Production Technology Goals: The facility is expected to commence volume production of Nvidia's Blackwell GPUs by October 2025, with plans to achieve volume production on its N3 process by the second half of 2027, further driving advancements in AI technology.
- Dividend Distribution: TSMC also approved a cash dividend of $0.22 per share for the first quarter of 2026, scheduled for payment on October 8, 2026, reflecting the company's balanced strategy between ongoing investments and shareholder returns.
See More
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- AI-Driven Earnings Growth: The South Korean stock market has surged over 80% this year, while Taiwan's index has also reached new highs, primarily driven by demand for AI-related semiconductors; however, this concentration may increase market volatility.
- Energy Price Impact: As large energy importers, Taiwan and South Korea face risks from rising oil prices due to Middle Eastern tensions, which could weaken their purchasing power and international competitiveness, even as AI demand boosts exports.
- Investor Sentiment Warning: Analysts warn that the market's overreliance on the AI theme could lead investors to inadvertently increase risk globally, especially as both U.S. and Asian markets are dominated by semiconductor giants.
See More
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