Citi analysts report that Taiwan Semiconductor Manufacturing Company (TSMC) is well-positioned to handle potential tariffs proposed by Trump, thanks to its solid technological leadership and resilient business fundamentals. Despite over 60% of TSMC's revenue originating from U.S. clients, most of its products are assembled outside of the U.S. Analysts predict that if tariffs are imposed based on the semiconductor content of imported finished goods, costs across the entire tech supply chain will rise.
Additionally, TSMC's expansion of its U.S. wafer facilities is progressing smoothly. The first plant's production yield has significantly improved to match the levels of its Taiwan facilities. Analysts also project that TSMC's earnings growth could exceed 30% next year, driven by strong demand for its AI chips.
