Tiger Brokers

TSMC Hedging Tariff Risks With U.S. Expansion -- Market Talk

Dow Jones
Jul 22

0905 GMT - TSMC is pushing forward with major U.S. expansion to mitigate the impact of trade tensions, Gimme Credit analyst Saurav Sen says in a research note. TSMC's tech leadership in the foundry sector is "insurmountable," and the main threat to its business is geopolitical tensions, Sen says. The chip giant plans to invest $165 billion in the U.S., including six advanced fabs, two packaging facilities and an R&D center in Arizona. With plans for 30% of its future 2-nanometer chips to be made in Arizona, that "creates a de facto 'tariff-proof cluster,'" the analyst says. Even though these overseas fabs are margin-dilutive, TSMC seems confident that it can recoup the value via pricing, scale and operational efficiency, Sen adds. TSMC's shares last closed at NT$1,130.00. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

July 22, 2025 05:05 ET (09:05 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10