Taiwan has pledged to boost investment in the U.S. after President Trump threatened tariffs that could pose a big risk to key exporter Taiwan Semiconductor Manufacturing Company (TSM).
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
President Lai Ching-te vowed to increase procurement and investment in the U.S. after Trump spoke critically of Taiwan on Thursday.
The U.S. trade deficit with Taiwan has ballooned by more than half, rising $26.1 billion to $73.9 billion last year thanks to booming demand for semiconductors, most of which are manufactured by TSM, the world’s largest chipmaker.
“We will increase investment in the US and purchases from it to balance bilateral trade,” said President Lai Ching-te on Friday, hours after Trump announced plans to impose reciprocal tariffs on trading partners with whom the U.S. has large trade deficits.
TSM in Trump’s Crosshairs
Referring pointedly to Taiwan, Trump said the country “took our chip business away” and vowed to bring the business “back in the US.”
Lai said Taiwan would respond “calmly” to Trump’s threats, but stressed that the country was not about to weaken its own position.
“The global semiconductor industry is an ecosystem, and it’s a division of work,” Lai said. “We hope to create a win-win scenario, not just to ensure benefit to the U.S. but also to ensure that Taiwan‘s industries [have] room for growth.”
TSM has already responded to pressure from the last two administrations, committing $65 billion to build three plants in Arizona, which when completed should produce about a fifth of the company’s output of chips.
Is TSM a Good Stock to Buy?
Overall, Wall Street analysts have a Strong Buy consensus rating on TSM, based on five Buys and one Hold. The average TSM price target of $243.67 implies about 20% of upside.
