President Trump’s administration has escalated trade tensions since taking office, implementing a 25% tariff on goods from Canada and Mexico and a 10% tariff on Chinese imports since February 1, 2025. The administration is considering additional tariffs targeting semiconductors, pharmaceuticals, steel, aluminum, copper, and oil and gas by mid-February. Potential tariff measures against the European Union are also under consideration.

The global semiconductor industry is in turmoil, with TSMC facing a rocky start to the year, hit by three major challenges at once. Earthquakes in southern Taiwan could cost billions, while DeepSeek’s rise challenges Nvidia’s AI dominance, raising uncertainty over AI chip demand. Meanwhile, Trump’s Tariff 2.0 slaps 25% duties on Mexican and Canadian goods and 10% on Chinese imports, fueling trade tensions.

For the first time, TSMC has launched a carbon reduction subsidy program specifically for first-tier raw material suppliers with factories in Taiwan.