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Investing.com -- Shares of Taiwan Semiconductor Manufacturing Co (TWSE: 2330, NYSE: TSM) climbed 2.6% following an urgent notice from the China Semiconductor Industry Association (CSIA) which may favor the company in ongoing trade disputes. The notice specifies that the declared country of origin for integrated circuits will be where the wafer fabrication plant is located, meaning chips made by TSMC will be considered of Taiwanese origin and exempt from tariffs. This is particularly significant for firms like AMD (NASDAQ:AMD) and Qualcomm (NASDAQ:QCOM) that outsource chip production to TSMC.
The company also reported strong financial results, with its net revenue for March 2025 reaching approximately NT$285.96 billion, marking a 10.0% increase from February 2025 and a substantial 46.5% surge from March 2024. The first quarter revenue of NT$839.25 billion represents a 41.6% increase compared to the same period the previous year, signaling robust growth for the semiconductor giant.
The tariff exemption is a pivotal development for TSMC, as it alleviates some of the cost pressures associated with the U.S.-China trade tensions. This positive regulatory shift, along with the impressive revenue figures, has contributed to investor confidence, reflected in the stock's upward movement. The exemption could potentially provide TSMC with a competitive edge in the global semiconductor market, as it may reduce costs for key clients who are major players in the technology sector.
TSMC's latest financial performance underscores its strong position in the semiconductor industry, which continues to see growing demand across various sectors, including consumer electronics, automotive, and industrial applications. The company's ability to deliver a significant YoY revenue increase highlights its operational efficiency and the strategic benefits of its business model, particularly in a time when supply chain resilience is of utmost importance.
Investors will likely keep a close watch on TSMC's future guidance and its ability to maintain momentum amid global economic uncertainties and the evolving landscape of international trade policies.
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