Taipei, Jan 17, 2026, 23:01 (TST) — Market closed.
Taiwan Semiconductor Manufacturing Co (2330.TW) saw its shares climb 2.96% on Friday, closing at NT$1,740.00. On the other side of the globe, its American depositary receipts (ADRs)—which represent foreign shares in the U.S.—finished up 0.22%, at $342.40. (MarketWatch)
With markets closed for the weekend, all eyes are on how the new U.S.-Taiwan trade agreement and evolving U.S. tariff policies might impact chip exporters and their equipment suppliers. The deal reduces tariffs on most Taiwanese exports from 20% to 15%, linking better semiconductor and equipment treatment to increased U.S. manufacturing. Taiwanese companies have also pledged $250 billion in U.S. investment, including $100 billion already committed by TSMC, according to Reuters. (Reuters)
At a Thursday investor conference, TSMC projected revenue to jump nearly 30% this year and announced capital expenditure would hit a record $52 billion to $56 billion. “These figures simply told investors AI demand is robust,” said Mega International Investment Services analyst Alex Huang. (Taipei Times)
TSMC has stepped up its U.S. presence. This month, it finalized the purchase of a second plot in Arizona to back its expansion efforts. The company has also set timelines for its fabs there, including advanced packaging work—the process that puts chips into high-performance units. (Reuters)
In Reuters Breakingviews, Chief Executive C.C. Wei was noted for checking demand directly with “customers’ customers” — including cloud firms and chip designers — and coming away “quite satisfied.” The piece pointed out that TSMC’s ramped-up spending aims to boost capacity in Taiwan and the U.S., but cautioned that a downturn following such a large build-out could be “painful and far-reaching.” (Reuters)
The rally extended to U.S. markets earlier this week. TSMC’s U.S.-listed shares surged 4.4% on Thursday, while the Philadelphia SE Semiconductor Index (.SOX) climbed 1.8%, boosted by gains in Nvidia, Broadcom, and Applied Materials, Reuters reported. But “that’s been kind of squashed this morning with the news from Taiwan Semiconductor,” said investment adviser Alan Lancz, pointing to valuation concerns. (Reuters)
The trade deal still faces a political snag in Taipei. Taiwan’s parliament must ratify it, but opposition lawmakers have raised alarms over potential “hollowing out” of the chip industry, Reuters reported. TSMC responded that its investment choices hinge on market conditions and customer demand, adding: “The market demand for our advanced technology is very strong.” (Reuters)
U.S. markets will be closed Monday in observance of Martin Luther King, Jr. Day, a short-term factor for global traders to note. (New York Stock Exchange)
A major date looms on the tariff front. The U.S. Supreme Court is set to issue rulings on Jan. 20, Reuters reported, as investors brace for a potential verdict on the legality of Trump-era global tariffs. (Reuters)
TSMC’s next step probably depends on new details rather than another strong earnings report. Traders want clarity on how the tariff agreement will be applied, updates on Arizona permits and packaging capacity, plus signs on whether AI chip demand stays firm as the U.S. tech earnings season unfolds.
