Taiwan Tech Stocks Rise on U.S. Tariff Exemptions, TSMC Dips on Semiconductor Uncertainty

Shares of major Taiwanese tech suppliers to Apple (NASDAQ:AAPL) surged Monday after the U.S. government temporarily excluded smartphones, computers, and other electronics—largely imported from China—from steep tariffs. The move boosted investor confidence in companies like Foxconn, Quanta, and Inventec.

Foxconn (SS:601138), Apple’s primary iPhone assembler, jumped around 4%, while Quanta, a top contract laptop maker, soared 7%. Inventec, known for manufacturing AI servers, also climbed 4%. The broader Taiwanese stock index rose approximately 1%.

However, Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading contract chipmaker, reversed early gains to trade in the red. U.S. President Donald Trump signaled plans to impose new tariffs on imported semiconductors within the coming week. While he suggested some flexibility for certain companies, markets remained cautious, with chipmakers seen as a key leverage point in ongoing U.S.-China trade negotiations.

Alex Huang, vice president at Mega International Investment Services, noted that Monday’s market reaction reflected optimism over the tariff exemptions, though the response may be premature. “It’s unlikely semiconductors will be exempt,” he said, highlighting the sector’s strategic importance in trade discussions.

Investors now await TSMC’s first-quarter earnings report, scheduled for Thursday, which could offer further insight into how trade tensions are affecting the semiconductor industry.

The temporary relief on consumer tech imports brought a short-term boost to hardware suppliers with U.S. exposure, but lingering uncertainty over tariffs on semiconductors continues to weigh on market sentiment.