On the morning of November 28th, the stock price of TSMC (2330.TW), the global leader in chip foundry, continued its decline, officially falling below the 1,000 NTD mark. As of press time, TSMC's share price was 998 NTD, down 0.2% for the day and marking four consecutive trading days of decline this week. Over the past month, TSMC's stock price has dropped by approximately 5%. While it remains up about 68% this year, its recent performance has been notably pressured.
Impact of Trump Tariffs and Chip Policies on Taiwanese Manufacturers
Analysts noted that the recent adjustments in TSMC and the Taiwanese stock market are mainly due to concerns over the possibility of Trump returning to politics with new tariff policies. During his campaign, Trump criticized Taiwan for "stealing" the U.S. chip industry and publicly expressed strong dissatisfaction with the "Chips and Science Act," calling it a "disaster." This stance has sparked speculation about potential changes in semiconductor policies if Trump returns.
On the 27th, Trump's potential cabinet member, Ramaswamy from the Department of Government Efficiency (D.O.G.E), stated publicly that he will collaborate with Elon Musk to review the Chip Act. This news further fueled market concerns over possible revisions to the future chip legislation.
Additionally, Trump's plan to impose a 5% tariff on Mexico could significantly impact the AI server supply chain concentrated in Mexico, with assembly plants being the most affected. This has raised concerns in the market that TSMC and other related supply chain enterprises may also be affected.
TSMC's Recent Performance Under Pressure
TSMC is the absolute leader in the global chip foundry market, but its stock has performed poorly in November. As the largest-weighted stock in the Taiwanese stock market, TSMC's weakness adds pressure to the broader market, amplifying pessimistic sentiment.
Despite a significant rise within the year, the impacts of international risks and policy changes on TSMC cannot be ignored. If Trump implements new tariff policies, it could increase the cost pressures for TSMC and other Taiwanese manufacturers in the international supply chain, while potentially weakening their competitive edge.
Heightened Uncertainty
Looking ahead, the trend of TSMC's stock price will still depend on changes in the international policy environment and overall demand in the semiconductor industry. If Trump indeed adjusts tariff policies or redefines the Chip Act, the export and competitiveness of Taiwan’s semiconductor industry may face further challenges. Furthermore, the prospects for global economic growth and changes in customer demand will also become crucial variables for TSMC's operations.
Investors should closely monitor further developments in Trump-related policies and TSMC's strategic responses to international changes. In the short term, the market may remain cautious due to uncertainty, with the semiconductor sector potentially continuing to fluctuate.
