Taiwan Semiconductor Manufacturing Company and Gigabyte Technology expand their operations in the US to counter the US tariff challenges, while Vanguard International Semiconductor Corporation remains focused on the Asian market.

Taiwan • Business • 04/11 16:39
Taiwan Semiconductor Manufacturing Company and Gigabyte Technology expand their operations in the US to counter the US tariff challenges, while Vanguard International Semiconductor Corporation remains focused on the Asian market.

Taiwanese semiconductor and electronics companies are adjusting their global strategies in response to potential high reciprocal duties from the United States. TSMC and Gigabyte have set up plants in the U.S. to strengthen local production; UMC is rumored to be a target for acquisition, attracting attention; Vanguard International Semiconductor has declined to establish a plant in the U.S. and is instead expanding in Singapore. These actions demonstrate the varied strategies of Taiwanese companies in navigating tariff uncertainties.

Key Updates

04/12 02:40

US-China Tariff War Escalates: Trump Slaps 145% Tariffs on Chinese Goods, Taiwanese Manufacturers Face Rush Orders and Pressure to Lower Prices

The US-China trade war is escalating. On April 9, President Trump announced a 145% tariff on Chinese goods and a 90-day suspension of reciprocal tariffs for 75 other countries, imposing only a 10% base tax rate. This move has caused shocks in the global supply chain, with Taiwanese manufacturers receiving a large number of urgent orders but facing pressure to reduce prices. Air freight space is fully booked, and demand for sea freight has surged, keeping logistics providers busy handling the rush. This article analyzes the impact of tariff policies on Taiwanese industries and the global logistics market.

04/12 01:08

US customs system malfunction impacts importers; Navarro urges market confidence as the Trump administration's tariff policy is facing challenges.

On April 11, 2025, the U.S. Customs and Border Protection's customs declaration system malfunctioned, preventing importers from using duty exemption codes, affecting goods from multiple countries and products from China subject to high tariffs. This issue occurred during the period when the Trump administration's new tariff policy was being implemented, exacerbating supply chain disruptions. White House trade advisor Peter Navarro urged investors to enter the market, stating that the tax cut plan and trade agreements would boost a stock market recovery.

04/11 22:39

U.S.-China Trade War Heats Up: Trump Announces 90-Day Tariff Delay, Causing Volatility in Taiwan and U.S. Stock Markets

On April 9, President Trump of the United States announced a 90-day suspension of high tariffs for most trade partners, imposing only a 10% baseline tariff. However, tariffs on Chinese goods were raised to 145%, escalating tensions in the U.S.-China trade war. This move caused turmoil in global financial markets, leading to significant drops in both U.S. and Taiwanese stock markets. Officials from the Federal Reserve pledged to stabilize the markets, and the House of Representatives passed a budget resolution paving the way for extending tax cuts, which raised concerns about fiscal stability. The Taiwanese government launched an 88 billion NT export support plan to address potential threats.

04/11 19:36

2025 U.S. Tariff Surge: Small and Medium-sized Businesses Feeling the Strain, Graduates Confronting Challenges

In April 2025, President Trump of the United States imposed a 145% tariff increase on Chinese goods and maintained a 10% tariff on goods from most trade partners, causing global market fluctuations, a decline in U.S. stock markets, and a spike in gold prices. Import costs for U.S. small and medium-sized businesses rose, intensifying supply chain pressures. However, experts believe a repeat of the 2008 financial crisis is unlikely in the near term. Recent graduates, facing an uncertain job market, demonstrate readiness and adaptability, actively tackling challenges.

04/11 18:08

The 2025 Trump Tariff Policy Initiates a Global Trade War: the Global Economy and Markets Severely Impacted

In April 2025, the global tariff policy of U.S. President Trump triggered a full-scale trade war, significantly impacting the global economy, financial markets, business operations, and consumers' lives. The U.S. and China imposed high tariffs on one another, and the EU, along with other countries, took retaliatory measures, resulting in business shutdowns, stock market volatility, and increased demand for precious metals. This policy reshaped the global economic and trade order and triggered international negotiations and created policy uncertainty.

04/11 16:39

Taiwan Semiconductor Manufacturing Company and Gigabyte Technology expand their operations in the US to counter the US tariff challenges, while Vanguard International Semiconductor Corporation remains focused on the Asian market.

Taiwanese semiconductor and electronics companies are adjusting their global strategies in response to potential high reciprocal duties from the United States. TSMC and Gigabyte have set up plants in the U.S. to strengthen local production; UMC is rumored to be a target for acquisition, attracting attention; Vanguard International Semiconductor has declined to establish a plant in the U.S. and is instead expanding in Singapore. These actions demonstrate the varied strategies of Taiwanese companies in navigating tariff uncertainties.

04/11 16:39

Escalation of the US-China Trade War: Taiwan's Electronics and Semiconductor Industries Benefit from the 145% US Tariff on Chinese Goods, Resulting in a Surge of Urgent Orders

On April 9, 2025, President Trump of the United States announced a 145% tariff on Chinese imports, while postponing high tariffs on other countries for 90 days. This decision caused turmoil in global markets, benefiting Taiwan's electronics and semiconductor sectors as urgent orders from the U.S. surged. The Taiwanese government swiftly responded by starting tariff negotiations with the U.S. and emphasized strengthening regulations to prevent "country of origin" fraud, to ensure the industry's long-term development.

04/11 14:09

Trump's Tariff Policies Spark Global Economic Shockwaves: U.S. Retirement Funds Suffer a $169 Billion Loss, European Central Bank Gears Up, Taiwan-U.S. Tariff Talks Kick Off

On April 2, President Donald Trump announced the implementation of a "reciprocal tariff policy" on 180 countries worldwide, resulting in a $169 billion loss for the top 25 state and local retirement funds in the U.S. within four trading days. The European Central Bank is preparing to tackle financial instability, and the EU forecasts that if the tariffs continue, the U.S. GDP will decrease by 3.3% before 2027. The U.S. has begun tariff negotiations with countries, including Taiwan and Israel. Taiwan is facing a 32% tariff impact and has proposed an industry support plan valued at 8.8 billion New Taiwan dollars.

04/11 13:09

Wells Fargo's first quarter profit surpassed expectations, CEO warns of potential economic impact of tariff risk in 2025.

Wells Fargo, the fourth-largest bank in the United States, announced its first-quarter earnings report on April 11, 2025, with a net profit of $4.89 billion, a 6% increase from the previous year, and earnings per share (EPS) of $1.39, exceeding the market expectation of $1.24. CEO Charlie Scharf warned that the U.S. government's recent tariff increases could hinder economic growth and stated that the bank is prepared for an economic slowdown in 2025. This statement dampened the optimistic sentiment in the banking industry, resulting in Wells Fargo's stock price rising only 1% on the day the earnings report was released.

04/11 12:39

Trump's 90-day tariff postponement did not stabilize the markets: the Asian stocks decline, the gold prices reach a new high, the yen soars to a two-year high

On April 9, President Donald Trump announced a 90-day suspension of higher tariffs on 75 countries, excluding China, in an effort to ease trade tensions, but this move failed to boost market confidence. Asian stock markets briefly rebounded but then fell back, with the Nikkei 225 index plunging 5.4%. The safe-haven sentiment drove gold prices to a record high, and the yen reached a two-year high against the dollar. Concerns about the escalating U.S.-China trade war persist, leading to funds flowing into safe-haven assets.

TSMC: U.S. Plant Construction Enters Substantial Phase

TSMC announced plans to build a plant in the U.S. during the Trump administration and has invested billions of dollars in Arizona to construct an advanced wafer fabrication facility. Recently, TSMC's expansion plans in the Taichung Central Taiwan Science Park have also been progressing. According to the Central Taiwan Science Park Administration, the Hsingnong Golf Course has announced it will cease operations on April 30, with land handover expected by the end of June. This signifies that the Phase II land of the Science Park will soon be officially handed over to TSMC, with construction activities expected to commence in the third quarter.

Taichung Mayor Lu Shiow-yen expressed initial concerns that TSMC's U.S. investment might delay the Phase II progress in the Science Park, but the project appears to be proceeding on schedule, providing some reassurance to the local government. This move indicates TSMC's dual-track strategy in global expansion, strengthening its U.S. presence while not abandoning domestic expansion in Taiwan.

UMC: Unclear Movements, Market Rumors of Merger

UMC has not publicly announced plans to build a plant in the U.S., but market rumors suggest it might become a merger target, drawing attention. Although no specific details are available, UMC's future actions remain a key focus amid U.S. pressure on the semiconductor industries in China and Taiwan.

Vanguard: Committed to Asia, Refuses U.S. Plant

Unlike TSMC and UMC, the third-largest foundry, Vanguard, has clearly stated it does not consider building a plant in the U.S. Chairman Fang Leuh pointed out that based on the company's scale and technological positioning, there is no necessity for a U.S. plant. Vanguard focuses on mature processes, mainly producing power management and display driver chips, with less than 1% of its exports directed to the U.S., thus having limited direct tariff impact.

Nevertheless, Fang acknowledged that tariff policy uncertainties negatively affect the overall industry. To mitigate risks, Vanguard is accelerating the construction of a 12-inch wafer plant in Singapore, a joint venture with European NXP Semiconductors, expected to start mass production in 2027. Fang noted that some customers have placed orders in advance to hedge against tariff risks, and the company has recently received urgent orders, indicating rising demand for non-China supply chains.

Gigabyte: Flexible Global Assembly Layout

Motherboard and server giant Gigabyte has already completed its global assembly layout, including sites in the U.S., Europe, and Southeast Asia. General Manager Li Yitai stated that Gigabyte's U.S. plant has obtained operational permits and power supply, ready to initiate small-scale trial production at any time. The plant mainly handles the final assembly of servers, and future expansion will depend on U.S. tariff policies.

Currently, less than 20% of Gigabyte's revenue comes from U.S. exports, with its main products being high-end graphics cards and servers manufactured in Taiwan. Facing tariff uncertainties, the company has coordinated with upstream and downstream suppliers to establish reasonable inventory levels and negotiated cost-sharing mechanisms with customers. Li Yitai revealed that some customers have requested to advance their third-quarter orders to the second quarter to avoid potential tariff impacts.

Additionally, Gigabyte's system assembly line in Malaysia has also started shipments, demonstrating its ability to flexibly allocate production capacity. The company expects double-digit revenue growth for the entire year of 2025 and will continue to monitor policy changes, adjusting production and shipping strategies as needed.

Diverse Strategies Emerge Among Taiwanese Manufacturers

Amid significant changes in U.S. tariff policies, Taiwanese tech companies are demonstrating different response strategies. TSMC and Gigabyte are actively expanding in the U.S. market, strengthening local production capabilities; Vanguard remains committed to Asia, expanding in Singapore, and seeking orders from non-China markets. These actions reflect the flexibility and diversity of strategies among Taiwanese manufacturers in the global supply chain restructuring process.

References

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