New York Times reports: TSMC will expand manufacturing in the US in exchange for Taiwan tariff reductions, causing the Taiwan stock market to surge to a high of 30,973 points this morning.
(Background summary: Bitcoin rapidly surges to $93,000! Taiwan stocks hit a new high surpassing 30,000 points, TSMC reaches a new peak of 1660 NT dollars)
(Additional background: Bitcoin returns to $91,000! The “clear rebound” of the offensive and the new situation in 2026)

Table of Contents

• Arizona wafer fab count to double
• Considerations under geopolitical risks
• Taiwan stocks jump sharply, TSMC hits a new high of 1720 NT dollars

According to today’s report from The New York Times, citing three informed sources, the Trump administration is preparing to finalize a key trade agreement with Taiwan, which could be officially announced as early as this month.

The core of the agreement involves the US reducing tariffs on Taiwanese exports from the current 20% to 15%. This will give Taiwan and other Asian allies like Japan and South Korea the same import tariff treatment, easing the cost burden for Taiwanese companies operating in the US.

Arizona wafer fab count to double

As a condition for tariff reduction, Taiwan’s leading semiconductor company TSMC has agreed to significantly expand its manufacturing capacity in the US. Informed sources reveal that TSMC will commit to building at least 5 additional semiconductor wafer fabs in Arizona, meaning the total number of factories in the state will nearly double compared to previous plans.

Although the specific investment timeline has not been fully disclosed, this move is seen as a key bargaining chip in US-Taiwan trade negotiations. TSMC has already built one factory locally, with a second expected to start production in 2028, and this expansion will further strengthen advanced process capacity on US soil.

Considerations under geopolitical risks

The achievement of this agreement carries profound strategic implications. The Trump administration has been pushing for trade negotiations that leverage alliances to attract investment, aiming to reshape US trade relations and ensure national security. Taiwan currently dominates the global leadership in AI and military-grade chips.

However, considering Beijing’s claims over Taiwan’s sovereignty and frequent military exercises, Washington is highly concerned about the risks of over-reliance on Taiwan’s supply chain. Through this agreement, the US hopes to bring critical chip production back home to prevent potential global supply chain paralysis in the event of a conflict in the Taiwan Strait.

Taiwan stocks jump sharply, TSMC hits a new high of 1720 NT dollars

Inspired by this news, Taiwan stocks jumped today (13th), with the highest intraday reaching 30,973 points, firmly crossing the 30,000 mark; TSMC also surged to 1,720 NT dollars, setting a new record high, with trading volume accounting for nearly 30% of the market.

In the short term, the TSMC earnings call on the 15th will determine whether the rally can continue. In the medium to long term, attention should be paid to the progress and cost control of the new Arizona plant, to confirm whether the safety premium exceeds operational losses.

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