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<Research>M Stanley: TSMC (TSM.US) LT Profit Margin to Face Headwinds If US Introduces Tariff Policy
Recommend 12 Positive 10 Negative 12 |
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If the US introduces tariff policy, it will pose a headwind to TSMC (TSM.US)'s long-term profit margin, Morgan Stanley released a report saying. Despite this, the broker kept rating at Overweight on TSMC on its technology leadership, long-term growth from AI and cheap valuation. At TSMC's 2Q24 analyst meeting, Morgan Stanley asked management who would bear the additional tariffs, and their answer was customers, not TSMC. Since then, the broker believed that additional US tariffs will result in higher costs for chip customers. However, if the US tariff on Taiwan semiconductor imports reaches 100% and the after-tariff cost of importing Taiwan semiconductors is higher than TSMC's US fab price, then TSMC's US customers (e.g., Apple (AAPL.US), NVIDIA (NVDA.US), AMD (AMD.US), QUALCOMM (QCOM.US) and others) may ask TSMC to expand its US fab output. AAStocks Financial News |
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