Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM) is gaining momentum as the artificial intelligence frenzy from tech giants drive unprecedented growth.The Taiwanese contract chipmaker’s leadership in advanced chipmaking continues to strengthen, powered by AI spending by the Big Tech giants, fueling the global AI infrastructure boom.Taiwan Semiconductor stock gained 51% year-to-date, topping the Nasdaq 100 index’s (which includes Taiwan Semiconductor) 20% returns.Also Read: Nvidia And Taiwan Semicon ...

Core Viewpoint - Taiwan rejects the U.S. proposal to locally manufacture half of the chips it supplies to the U.S., emphasizing that the "50-50" split in semiconductor production was not discussed during trade talks [1][3]. Group 1: Trade Negotiations - The focus of the recent trade talks was on lowering tariff rates, securing exemptions from additional duties, and reducing levies on Taiwanese exports, with Taiwan currently facing a reciprocal tariff rate of 20% [2]. - Taiwan's top trade negotiator, Cheng Li-chiun, indicated that the proposal for a "50-50" split in semiconductor production was not even on the agenda during discussions [1]. Group 2: U.S. Position and Concerns - U.S. Commerce Secretary Howard Lutnick stated that the goal is to significantly onshore chip manufacturing, proposing a shift to a "50-50" production model to reduce American reliance on Taiwan, which currently meets 95% of U.S. chip demand [3][4]. - Lutnick's proposal has faced criticism from Taiwanese politicians, who view it as an act of exploitation, with Eric Chu, chairman of the Kuomintang party, condemning it as undermining Taiwan's semiconductor industry [5][6]. Group 3: Strategic Implications - The concept of Taiwan's "Silicon Shield," which refers to its critical role in global chip production as a defense against potential military action from China, is a significant aspect of the discussion [6]. - Lutnick downplayed the "Silicon Shield," suggesting that a more balanced chip production between the U.S. and Taiwan would enhance Taiwan's safety [7].

Tariffs and an attempt to steal secrets aren't enough to break TSMC or Taiwan's silicon shield, writes @cathythorbecke (via @opinion) https://t.co/vJFh1WaW7g ...