President Donald Trump will meet with Taiwan Semiconductor Manufacturing Co. (TSM) CEO C. C. Wei and reports claim a new manufacturing investment will be announced. According to unnamed insiders, TSMC will pledge to invest $100 billion into building chip manufacturing plans in the U.S. during today’s meeting.
That’s a huge investment in U.S. manufacturing and comes after TSMC announced its intention to dedicate $65 billion to expand manufacturing in the country. It’s unclear if that prior $65 billion investment is included in the reported $100 billion investment set to be announced today.
What This Means for the U.S.
President Trump has been pushing to bring more semiconductor manufacturing to the U.S. In February the President said, “We have to have chips made in this country. Right now, everything is made in Taiwan, practically, almost all of it, a little bit in South Korea, but everything, almost all of it is made in Taiwan.”
TSMC is headquartered in Taiwan and is the largest semiconductor foundry in the world with a long list of customers. A few notable ones include Apple (AAPL), Nvidia (NVDA), Advanced Micro Devices (AMD), Qualcomm (QCOM), Broadcom (AVGO), Sony (SONY), and Marvell (MRVL).
With President Trump pushing for more tariffs, companies are expected to pay more for chips. However, this is encouraging foreign companies to move factories to the U.S. If this continues, it could increase jobs in the U.S. while allowing tech companies to avoid tariffs from overseas manufacturing.
Is TSM Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for TSMC is Strong Buy based on five Buy and one Hold ratings over the last three months. With that comes an average price target of $245, a high of $265, and a low of $215. This represents a potential 38.6% upside for TSM stock.
