TOKYO – Asian semiconductor stocks saw mixed reactions on Thursday (Aug 7) after former US President Donald Trump threatened to impose a 100% tariff on chip imports. However, leading firms like TSMC and Samsung gained ground following Trump’s pledge to exempt companies investing in the United States.
Speaking at the White House ahead of sweeping new trade levies, Trump said, “We’ll be putting a tariff of approximately 100 per cent on chips and semiconductors, but if you’re building in the United States… there’s no charge.” He did not provide a timeline for when the tariffs would take effect.
The announcement comes amid a global race to produce advanced chips for artificial intelligence, with the US aiming to onshore critical tech manufacturing.
In Tokyo, the news triggered a sell-off in several tech firms: chip equipment maker Tokyo Electron slid 3.2%, chipmaker Renesas dropped 3.4%, precision tools supplier Disco Corp lost 1.3%, and silicon wafer maker Sumco fell 1.2%.
Conversely, Taiwan Semiconductor Manufacturing Company (TSMC) surged nearly 5% in Taipei, buoyed by reassurances that it would be unaffected by the tariffs. Taiwan’s National Development Council chief Liu Chin-ching told parliament that TSMC—due to its US-based facilities—would be exempt. “Some Taiwanese chipmakers will be affected,” he noted, “but their competitors will also face the same tariffs.”
TSMC, which is expanding production in Arizona, has pledged up to US$165 billion in US investments—what it calls the largest-ever foreign direct investment in the country.
South Korea’s Samsung Electronics, also ramping up US operations, rose 2% in Seoul. Rival SK hynix also advanced.
“The highest-end semiconductors will be excluded,” said Alicia Garcia-Herrero, chief Asia-Pacific economist at Natixis. “But this move hurts producers of lower-end chips, especially in China and Malaysia.”
Arisa Liu, senior semiconductor researcher at the Taiwan Institute of Economic Research, noted the policy would “influence future strategies” of global chipmakers. She added that companies focused on advanced processes—especially those aligned with AI and high-performance computing—would feel the greatest impact, though TSMC and Samsung would likely qualify for exemptions.
Apple-related suppliers also gained after the tech giant announced an additional US$100 billion investment in the US, raising its total pledge to US$600 billion over the next four years. In Taipei, Foxconn and Pegatron both moved higher.
Tariff Turmoil and Global Market Reaction
Morgan Stanley analysts said the outcome may be “something of a relief,” noting that while 100% tariffs are steep, companies could adapt by shifting manufacturing to the US. “The real cost is higher US production expenses,” they added.
Trump’s tariff warning came just hours before his broader “reciprocal” trade measures were set to begin. These included a 50% levy on Indian goods, imposed in response to India’s Russian oil imports, and a similar 50% tariff on Brazilian products, announced Wednesday. Switzerland was hit earlier this week with a 39% duty.
Investors are closely monitoring ongoing trade talks with countries like India and Switzerland.
Despite the tariff tensions, Asian stock markets extended recent gains, recovering from last week’s losses triggered by weak US jobs data and initial tariff fears. Markets in Tokyo, Hong Kong, Shanghai, Singapore, Seoul, and Wellington all traded higher, with Taipei leading thanks to TSMC’s rally.
The upbeat sentiment followed a strong session on Wall Street, where Apple surged over 5% and Amazon gained 4%. Investors grew more hopeful about interest rate cuts after poor job growth figures from May through July signaled a slowing US economy.
Oil prices also rose after Trump warned of penalties for countries that continue buying Russian oil, adding pressure following his new tariffs on India. Meanwhile, markets are watching developments in Ukraine, after Trump suggested he may meet Vladimir Putin “very soon” following what he called productive talks between his envoy and the Russian president.
