How Trump’s ‘100% Chip Tariffs’ Impact Japan’s Tech Giants While Samsung and TSMC Thrive on U.S. Opportunities

Semiconductor Stocks Affected by New U.S. Tariffs

Recently, semiconductor-related stocks in Asia showed mixed reactions following an announcement from U.S. President Donald Trump. He revealed plans to impose a 100% tariff on chip imports but promised exemptions for companies committed to building manufacturing in the U.S.

Details about how much domestic manufacturing is required to qualify for these exemptions remain unclear, which is causing concern among investors.

In Japan, major companies like Tokyo Electron faced a decline of over 5% but managed to recover slightly, trading down about 2.9%. Other companies also experienced similar drops. Renesas Electronics fell by 4%, while Advantest dropped 3.3%.

In contrast, South Korean companies like Samsung and SK Hynix seemed to escape this tariff. Reports indicate that these companies may be exempt, which allowed SK Hynix to recover after an initial 3% drop. Interestingly, Samsung Electronics shares rose by 2.47%, especially after Apple announced plans to use chips made by Samsung in its devices.

Taiwan Semiconductor Manufacturing Company (TSMC), the largest chip supplier globally, also started strong, rising over 4%. TSMC has been making significant investments in the U.S., including a recent $65 billion commitment for three new plants in Arizona.

Ernie Tedeschi, an economist from Yale, pointed out that the lack of detailed guidelines could complicate how these tariffs will be implemented. Andrew Jackson, an analyst at ORTUS Advisors, mentioned that while the initial news might give a shock to Japanese markets, it could ultimately be beneficial. The need for Japanese chipmaking equipment is critical for ramping up production in the U.S.

Daniel Newman, CEO of The Futurum Group, stated that major companies like Apple, Nvidia, and TSMC are likely to come out ahead in this new landscape. Smaller companies without the same resources may have to navigate tougher negotiations.

As this situation unfolds, it’s worth watching how these tariffs will reshape the semiconductor industry. Companies that adapt quickly to these changes may find new opportunities for growth, while others could struggle to keep pace.

Source link

Breaking News: Markets,Apple Inc,Advantest Corp,Renesas Electronics Corp,Tokyo Electron Device Ltd,Donald Trump,United States,Donald J. Trump,Markets,business news