The timing of semiconductor tariffs announcement emerges, TSMC ADR leads the decline in Tech Stocks

U.S. President Trump recently revealed that the announcement of semiconductor tariffs is imminent, with the earliest implementation next week. The news immediately triggered market panic. TSMC ADR (TSM-US) led the pressure, with its stock price dropping to $232.47, a single-day decline of 2.73%. The Philadelphia Semiconductor Index fell 1.12% to 5,561.69 points, hitting a recent adjustment low. The Dow Jones Industrial Average declined 0.14% to 44,111.74 points, the S&P 500 Index fell 0.49% to 6,299.19 points, and the Nasdaq Index dropped 0.65% to 20,916.55 points. The entire U.S. stock market is shrouded in uncertainty due to policy unpredictability.

Policy Threat Behind Section 232

According to the U.S. Department of Commerce’s Section 232 assessment, a national security investigation was initiated in April. The core purpose is to evaluate whether the U.S.'s dependence on imported semiconductors poses a national security risk. The investigation’s results are expected to be announced next week, which will serve as the policy basis for imposing new tariffs on the semiconductor and chip markets. Analysts point out that once the tariff policy is officially implemented, the cost structure of the entire supply chain will be reshaped.

Variables and Cost Pressures in TSMC’s Investment Plans

Trump stated that TSMC will invest up to $300 billion (approximately NT$8.97 trillion) in Arizona to build the world’s largest wafer fab. This figure far exceeds TSMC’s previous announced plan of $165 billion, raising market concerns about the company’s funding needs and operating costs. It is understood that TSMC’s actual plan involves constructing six advanced fabs and two packaging plants, but Trump’s remarks further intensify investor concerns over capital expenditure and profitability.

Cost Transfer Risks Facing Tech Giants

Major technology companies such as Microsoft, OpenAI, Meta, and Amazon are investing billions of dollars in procuring advanced chips to support AI expansion. Industry experts believe that if semiconductor tariffs are formally implemented, the rising chip costs will be directly passed on to these companies’ supply chains, thereby affecting their overall operating margins. This move not only impacts the profitability of semiconductor manufacturers but could also trigger a cost chain reaction across the entire tech industry.

Internal Security Incidents at TSMC Worsen

In addition to policy risks, TSMC also disclosed an internal security crisis on Tuesday. During routine monitoring, the company discovered that several former employees improperly stole core confidential documents related to the 2-nanometer process. TSMC immediately activated its “zero tolerance” policy, dismissing the involved personnel and referring the case to judicial authorities. This incident, coupled with tariff policy risks, further undermines investor confidence and adds downward pressure on stock prices.

Industry Outlook Shrouded in Uncertainty

As the timing of the semiconductor tariffs announcement approaches, the market is awaiting policy details. Analysts indicate that once the new tariffs are implemented, TSMC and the global semiconductor supply chain may face dual pressures: on one hand from increased policy costs, and on the other from supply chain reorganization uncertainties. The industry outlook remains unclear during this policy vacuum period.