NEW YORK, Jan 16, 2026, 11:05 (EST) — Regular session
- TSMC’s U.S.-listed shares edged up roughly 0.3% in late morning trading, following a sharp jump after its earnings report the previous day.
- A U.S.-Taiwan trade agreement slashes broad tariffs and gives chipmakers reduced duties linked to expanding production in the U.S.
- The next key figure for traders will be TSMC’s January sales report, due Feb. 10.
Taiwan Semiconductor Manufacturing Company Limited’s U.S.-listed shares climbed 0.3% to $342.50 on Friday, having peaked at $349.72 earlier in the session.
This move is significant since TSMC is a key player in contract chip manufacturing, providing cutting-edge processors for devices ranging from smartphones to AI servers. Its ADRs are U.S.-traded certificates representing shares of the Taiwan-listed firm.
Investors are juggling two big factors: a spending surge driven by AI demand, and a new trade policy tying tariffs to the location of chip manufacturing.
TSMC reported Thursday a Q4 net income of NT$505.74 billion on revenue totaling NT$1.046 trillion. The chipmaker projects first-quarter revenue between $34.6 billion and $35.8 billion. CFO Wendell Huang noted that demand for advanced chip technologies remained strong in Q4 and is expected to hold steady into early 2026. The company also broke down wafer revenue by 3-nanometer, 5-nanometer, and 7-nanometer processes. (TSMC)
On earnings day, CEO C.C. Wei said customers are sending “strong signals,” projecting 2026 revenue to jump nearly 30% in U.S. dollars. He cautioned that mismanaging a $52 billion to $56 billion capital budget—mostly for new plants and equipment—“would be a disaster.” Wei added management is “very nervous” about an AI bubble risk. Analyst Ben Barringer of Quilter Cheviot noted the company benefits as “the key manufacturer” amid competition between Nvidia, Broadcom, and AMD for chip dominance. (Reuters)
Shares of U.S.-listed companies surged 4.4% Thursday following the earnings report, giving chip stocks across Wall Street a notable boost. (Reuters)
Hours later, a fresh development emerged in Washington. The U.S. and Taiwan struck a trade agreement cutting broad tariffs on Taiwanese exports from 20% down to 15%. The deal also grants chipmakers lower duties, including some duty-free imports, when they boost production stateside, according to the Commerce Department. It aims to channel $250 billion in Taiwanese investment into the U.S., with $100 billion already pledged by TSMC for 2025. Officials hope to relocate 40% of Taiwan’s chip supply chain and manufacturing to the U.S. Dan Hutcheson, vice-chair at TechInsights, said the pact is poised to increase demand throughout the chipmaking supply chain. (Reuters)
Yet, heavy spending isn’t without risk. Should data-center demand drop off quicker than anticipated, the industry could be stuck with costly capacity that won’t fill up right away. Plus, U.S. expansion still faces hurdles like permits, hiring, and political challenges.
Traders now face a fresh question: will “advanced packaging”—the method of assembling and linking chips to function as a system—emerge as a bigger bottleneck than wafer capacity? They’re also weighing how much the updated tariff rules really affect production costs.
TSMC’s monthly sales report for January 2026 is set for release on Feb. 10. Investors will watch closely to see if demand aligns with the company’s optimistic forecast. (TSMC)
