U.S. and Taiwan Sign $250 Billion Semiconductor Agreement to Reshape Supply Chains
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: NASDAQ.COM
- Investment Commitment: The agreement between the U.S. and Taiwan will drive Taiwanese semiconductor and technology firms to invest at least $250 billion in the U.S. to build and expand advanced semiconductor, energy, and AI production capabilities, significantly enhancing U.S. economic resilience and national security.
- Credit Guarantees: Taiwan will provide credit guarantees of at least $250 billion to facilitate further investments by Taiwanese enterprises, supporting the establishment and expansion of the U.S. semiconductor supply chain and ecosystem, thereby ensuring U.S. leadership in critical technology sectors.
- Industrial Park Development: The agreement will also promote the creation of world-class industrial parks in the U.S., which will strengthen America's industrial infrastructure and position the country as a global hub for next-generation technology and advanced manufacturing, enhancing U.S. innovation capacity.
- Tariff Framework: A predictable tariff framework is introduced, capping the U.S. reciprocal tariff rate on Taiwanese goods at 15%, while providing tariff incentives for Taiwanese firms investing in new semiconductor capacity in the U.S., further solidifying America's competitiveness in the global semiconductor market.
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: 327.110
Low
290.00
Averages
348.25
High
400.00
Current: 327.110
Low
290.00
Averages
348.25
High
400.00
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.
