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

Table of Contents

• The number of wafer fabs in Arizona will double
• Considerations under geopolitical risks
• Taiwan stocks jump sharply, TSMC hits a new high of 1720 NT$

According to a report today by 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 exported goods, lowering the rate from the current 20% to 15%. This will allow Taiwan and Asian allies such as Japan and South Korea to enjoy the same import tariff treatment, reducing the operational costs for Taiwanese companies in the US.

The number of wafer fabs in Arizona will 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 schedule has not been fully disclosed, this move is seen as a key bargaining chip in US-Taiwan trade negotiations. TSMC has already established one factory locally, with a second expected to start production in 2028, and this expansion will further strengthen advanced manufacturing capacity in the US.

Considerations under geopolitical risks

The achievement of this agreement carries profound strategic implications. The Trump administration has been pushing for trade negotiations that leverage tariffs to attract allied investments, aiming to reshape US trade relations and ensure national security. Particularly in the fields of artificial intelligence (AI) and military equipment requiring cutting-edge chips, Taiwan currently holds a dominant position globally.

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 onshore 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$

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

In the short term, the TSMC earnings presentation on the 15th will determine whether the market can continue its rally. 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.