Global technology stocks rallied strongly Thursday after U.S. President Donald Trump’s latest tariff announcement largely exempted major industry players from a threatened 100% tariff on chips and semiconductors.
Trump stated the new tariff would apply to “all chips and semiconductors coming into the United States,” but companies that commit to manufacturing in the U.S. or are already doing so will be spared. This relief lifted investor sentiment across the tech sector, News.Az reports, citing Reuters.
Apple shares jumped 3.3% in premarket trading following Trump’s announcement of the company’s $100 billion investment pledge to boost U.S. manufacturing—a move that helps Apple avoid potential tariffs on iPhones.
Other U.S.-listed chipmakers also advanced broadly: Advanced Micro Devices (AMD) gained 2.5%, Intel rose 2.1%, and Nvidia increased 1.1%. Applied Materials, Texas Instruments, GlobalFoundries, and Broadcom—all Apple partners in the investment plan—posted gains between 0.8% and 10.1%.
European chipmakers joined the rally, with ASML, ASMI, and BE Semiconductor Industries each climbing about 3%. Germany’s Infineon added 0.6%, though it noted uncertainty due to lack of detailed tariff information.
The new tariff guidance seemingly exempts Taiwan’s chip giant TSMC, which operates factories in the U.S. TSMC shares surged nearly 5%, hitting record highs. South Korea’s Samsung Electronics and SK Hynix also saw increases of 2.5% and 1.4%, respectively, after assurances they would avoid the full tariffs.
Samsung has invested heavily in U.S. chip fabrication plants in Texas, while SK Hynix plans advanced facilities in Indiana focused on AI technologies.
Despite the positive momentum in tech, some industries feel the strain. Toyota cut its full-year operating profit forecast by 16%, anticipating nearly a $10 billion hit from U.S. auto tariffs.
In Southeast Asia, concerns remain. The Philippines and Malaysia are seeking clarity on the tariff rates, with Philippine semiconductor exports—making up 70% of its electronics output—potentially facing severe impacts. Philippine stocks fell slightly amid the uncertainty.
Since taking office, President Trump has used tariff threats strategically to encourage reshoring of semiconductor production and reshape global supply chains. Analysts suggest the 100% tariff figure may serve as an initial negotiation position, with final rates possibly adjusted to manage inflationary pressures on consumer goods.
The easing of tariff fears for key tech players offers a renewed boost for the semiconductor sector, which remains crucial for the evolving global economy.
