Trump says he told Taiwan's TSMC he'd slap a 100% tax on it if it didn't make its chips in the US

**TSMC's Strategic Positioning and Tariff Exemption**: 1. **Tariff Waiver and Stock Reaction**: TSMC's stock surged nearly 5% after Trump granted a 100% tariff waiver, trading at fresh highs. This move was a clear endorsement of TSMC's strategic focus on manufacturing in the U.S., which exempts it from punitive tariffs. 2. **Investment Commitments**: TSMC's substantial investment in U.S. manufacturing, amounting to $65 billion for three Arizona plants, underscores its commitment to domestic production. This investment not only secures TSMC's tariff exemption but also positions it to capitalize on the growing demand for semiconductor manufacturing within the U.S. 3. **Impact on Competitive Landscape**: While TSMC benefits from this policy, other Taiwanese chipmakers may face competitive challenges if they cannot replicate such investments. This could lead to a shift in market dynamics, with TSMC potentially gaining a larger share of the U.S. semiconductor market. 4. **Potential Revenue Sharing**: There are rumors that Trump intends to involve TSMC and other chipmakers in a 'profit-sharing' deal for chips sold to China. This could further complicate TSMC's relationship with the Trump administration and might necessitate adjustments to their business model to accommodate such demands. In conclusion, TSMC's strategic decision to invest heavily in U.S. manufacturing and its exclusion from Trump's 100% tariff plan have positioned it favorably within the global semiconductor market. However, the potential for revenue sharing and the need to navigate complex geopolitical trade relations present ongoing challenges for the company.