TSMC Soars 3.11% on U.S. Expansion Plans

On May 1, 2025, TSMC's stock rose by 3.11% in pre-market trading, reflecting investor optimism and strategic developments within the company.

TSMC's decision to expand its operations in the United States, driven by political pressures and strategic investments, has been a significant factor in its recent stock performance. The company has announced plans to invest an additional $1000 billion, bringing the total investment to $1650 billion, to build six chip factories and two packaging centers in the U.S. This move is seen as a response to threats from the Trump administration, which had proposed a 100% tax on TSMC if it did not relocate some of its operations to the U.S.

TSMC's expansion in the U.S. is part of a broader trend among Taiwanese companies, many of which are following TSMC's lead by also planning to build factories in the U.S. This includes suppliers like Han Tang, Zhen Ding, and others, who are looking to support TSMC's operations and benefit from the growing semiconductor market in the U.S. Additionally, major players like Daylight Technology have expressed interest in evaluating the opportunity to build factories in the U.S. to support their clients' business development.

TSMC's strategic investments and expansions are not without challenges. The company faces legal and regulatory hurdles, including a new law in Taiwan that restricts the export of its most advanced manufacturing technologies and requires approval for overseas investments. Despite these challenges, TSMC remains committed to its expansion plans, which are expected to significantly boost its production capacity and market presence in the U.S.