Taiwan Semiconductor Manufacturing Company (TSMC) has increased its prices for U.S.-based foundries by 30 percent. Despite this significant hike, the company continues to secure substantial orders from American companies, largely due to ongoing tariff uncertainties that have made international business difficult.
Although TSMC’s most advanced manufacturing plants are not located in the U.S., major companies like Apple and Nvidia are still investing in its U.S. operations. This is despite the fact that President Donald Trump has exempted most electronics from tariffs, as the entire global supply chain remains unstable and unpredictable.
Initially, it was assumed that American companies would avoid placing orders with TSMC’s U.S. facilities. However, concerns over potential future changes in tariff exemptions have led many to reconsider, as continuing to do business with Taiwan could result in significant challenges if tariff policies change. This shift has allowed TSMC to increase prices while still receiving a high volume of orders.
Tariffs have been implemented globally, aiming to encourage companies to bring production back to the U.S. instead of relying on cheaper overseas labor. This has caused panic among businesses, who have been stockpiling inventory in the U.S. to delay the impact of tariffs.
Fortunately for companies like Apple, the president recently exempted most electronics from the tariffs. However, the unpredictable nature of these trade policies leaves many expecting new tariffs or similar measures in the near future. This uncertainty has made TSMC’s U.S. foundries more crucial than anticipated.
Experts predict that shifting production to the U.S. would result in significantly higher costs. Some view this situation as a necessary hardship for a potentially better future, while others are more skeptical. Regardless of the outcome, the stock market has reacted negatively in recent weeks, and companies like Apple and TSMC are likely struggling to navigate the evolving landscape.
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Disclaimer: The information in this article is based on the latest available data and may be subject to change. While we strive to provide accurate and up-to-date details, readers should verify the information from official sources as the situation evolves. This article does not constitute financial or investment advice.
