By Samiat Apr, 03, 2025 Featured

Chip Stocks Slide After Trump’s Tariff Announcement, Impacting Nvidia, TSMC, and Others

Semiconductor stocks took a hit in after-hours trading on Wednesday following President Donald Trump's announcement of sweeping reciprocal tariffs affecting the global chip supply chain.

Shares of Nvidia (NVDA) fell 4.7%, while competitor Advanced Micro Devices (AMD) dropped 4.5%. Broadcom (AVGO) declined 5.2%, and Micron Technology (MU)—a key supplier of memory chips for Nvidia’s GPUs—plunged 6.4%. Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC), which produces advanced chips for Nvidia and Apple, slid 4.8%.

Taiwan exported approximately $33 billion worth of computer components—including Nvidia’s GPUs—to the U.S. in 2024, alongside $19 billion in computer-related products such as servers powered by Nvidia chips, according to trade data compiled by supply chain analyst Jason Miller of Michigan State University. By contrast, China exported $16 billionworth of computer parts, including Nvidia GPUs, and $34 billion in computer-related products.

During his announcement, Trump criticized Taiwan’s dominance in semiconductor manufacturing, stating:
"Taiwan took all of our computer chips and semiconductors. We used to be the king… Now, we have almost none."

TSMC, the world's leading producer of advanced chips for major U.S. companies like Apple (AAPL), Nvidia, AMD, and Intel (INTC), has long been a critical player in the semiconductor industry. Many American chipmakers have outsourced manufacturing due to the high costs associated with domestic production.

While it remains unclear how tariffs might incentivize chip production within the U.S., Trump highlighted TSMC’s $100 billion investment in expanding its semiconductor manufacturing facilities in Arizona. The company had already begun expanding its U.S. presence under President Joe Biden’s administration with support from the CHIPS and Science Act, though Trump officials have suggested the subsidies could be subject to review.

Addressing concerns from companies opposed to the tariffs, Trump added:
"If you want your tariff rate to be zero, then build your product right here in America. There is no tariff if you manufacture in the U.S."

The announcement raises uncertainty for the semiconductor industry, which relies heavily on global supply chains, particularly in Taiwan and China.

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