US tariff exclusions boost TAIEX momentum
The consultancy firms PwC Taiwan and EY Taiwan have raised concerns about the unclear aspects of the recently announced US tariff policy on semiconductors. One of the main points of contention is whether the exemptions extend to semiconductor manufacturing equipment or end-products such as laptops and smartphones.
According to the current clarification, the 100% tariffs apply specifically to semiconductor chips imported into the United States. However, there is a key exemption for companies that are building semiconductor manufacturing capacity within the US or have committed to doing so. These companies will not face the tariffs [1][3][4].
However, the details regarding whether the exemptions extend to related products like semiconductor manufacturing equipment or end-products remain unclear and are yet to be fully disclosed. The Semiconductor Industry Association has expressed a desire to learn more about the scope and structure of these tariffs and exemptions [4].
Industry voices suggest that tariffs on chips alone could raise costs substantially for electronics manufacturers. This implies that tariffs do not yet officially apply to finished electronic products like laptops or smartphones. However, because chips are essential components of these devices, increased chip costs may indirectly raise prices across the electronics supply chain [5].
At present, there is no definitive official statement or documentation that clarifies that exemptions on chips explicitly extend to semiconductor manufacturing equipment or end-products. The announced policy primarily focuses on chips themselves and manufacturing commitments within the US, awaiting further regulatory or government clarification [1][3][4].
In light of these uncertainties, companies are urged to assess their supply chain exposure and prepare contingency strategies. As the situation develops, industry groups will continue to seek clarification to understand the tariff scope fully and mitigate potential cost increases.
Meanwhile, the market turnover on the main board yesterday was NT$452.976 billion (US$15.19 billion). Despite the ongoing tariff uncertainties, the near-term outlook for the market remains "cautiously optimistic" due to solid tech fundamentals and improving valuations. Proprietary traders and mutual funds posted net purchases of NT$5.5 billion and NT$1 billion respectively.
Foreign institutional investors were net buyers of NT$43.24 billion of local equities. The tariff exemption is seen as a major boon for firms expanding US operations, including TSMC, Nvidia, and Apple. However, renewed tariff risks or global macro shocks could negatively impact market sentiment.
[1] US tariffs on semiconductors: What you need to know
[2] Semiconductor Industry Association calls for clarity on US tariffs
[3] EY Taiwan warns of potential tariff impact on semiconductor industry
[4] PwC Taiwan raises concerns over US tariff policy on semiconductors
[5] Impact of US semiconductor tariffs on the global electronics industry
- As the tariff exemption is currently unclear for semiconductor manufacturing equipment and end-products, the business community is seeking clarification from the government to avoid potential cost increases.
- The potential tariffs on semiconductors could impact not only the chip industry but also the broader finance sector, as increased costs may ripple through the entire electronics manufacturing business.
