Morgan Stanley: TSMC may receive semiconductor tariff exemptions due to investment commitments in the US. Maintains overweight rating on TSMC.

Morgan Stanley stated that Taiwan Semiconductor's investment commitment to US chip factories should receive an exemption or grace period from US semiconductor tariffs, which is better than what most investors were worried about. They reiterated their overweight rating on Taiwan Semiconductor with a target price of 1388 Taiwan dollars. Analysts, including Charlie Chan, pointed out in their report that Taiwan Semiconductor still retains its capital expenditure plan of $165 billion by 2030 for its US operations. The exemption of tariffs on Taiwan Semiconductor chips helps alleviate concerns about demand in the technology sector.