By Shashwat Chauhan, Ankur Banerjee and Rae Wee
(Reuters) -Global technology stocks advanced on Thursday in a relief rally after the latest tariff salvo from U.S. President Donald Trump largely exempted industry heavyweights from his threat to impose 100% levy on chips and semiconductors.
Trump said the new tariff rate would apply to “all chips and semiconductors coming into the United States,” but would not apply to companies that had made a commitment to manufacture in the U.S. or were in the process of doing so.
Apple stock rose 2%, clawing back most of its losses since the Liberation Day selloff back in April, after Trump’s announcement on Wednesday that the company will invest an additional $100 billion in the U.S., a move that could help it sidestep potential tariffs on iPhones.
Semiconductor manufacturing equipment supplier Applied Materials and chipmakers Texas Instruments, GlobalFoundries and Broadcom – Apple’s partners in the investment effort – climbed between 1.3% and 5.5%.
Other U.S.-listed chipmakers also rose, with Advanced Micro Devices up 3.1% and Nvidia 1.4%, respectively.
“From a high level, the 100% headline number seems intimidating, but in practice we expect a much lower impact,” BofA Global Research analysts led by Vivek Arya said in a note.
Intel, however, fell 1.4% after Trump called for the immediate resignation of Intel’s new CEO, Lip-Bu Tan.
European chipmakers also joined the rally, with ASML and ASMI up more than 3% each. BE Semiconductor Industries climbed 4.7%.
J.P.Morgan analysts expect the proposed 100% semiconductor tariff would not be stacked on top of the 15% baseline tariff agreed between the European Union and the U.S. last week.
According to EU officials, the framework trade deal will have zero-for-zero tariffs on semiconductor-making equipment.
Germany’s Infineon said it could not speculate on possible semiconductor tariffs, as no details have been disclosed yet. Its shares were up 0.9%.
Trump’s latest on semiconductor tariffs seemingly rules out Taiwanese chip contract manufacturer TSMC, which makes chips for most U.S. companies, including Nvidia, as it has factories in the U.S.
“The market remains keen to buy TSMC on dips. Investors also believe they need to remain positioned in AI – with or without tariffs,” UBS analysts said.
TSMC shares closed almost 5% higher to hit all-time highs, while Samsung Electronics and SK Hynix climbed 2.5% and 1.4%, respectively.
South Korea’s Samsung and SK Hynix will also not be subjected to 100% tariffs on chips, the country’s top trade envoy said.
Samsung has invested in two chip fabrication plants in Austin and Taylor, Texas, while SK Hynix has announced plans to build an advanced chip packaging plant and research and development facility for artificial intelligence products in Indiana.
Since stepping into the White House in January, Donald Trump has made several tariff threats, specifically on semiconductors, aimed at reshaping the supply chain of the industry and spurring domestic production.
“The (100% tariff) figure fits Trump’s approach of ‘open high, negotiate down’ and the final figure could be similar to reciprocal tariffs to limit inflation in consumer goods, given that many have chips,” said Phelix Lee, senior equity analyst at Morningstar.
Not everyone has come out of the latest blitz on the right side, with the Philippines and Malaysia looking to find out more details about the tariff rate.
Dan Lachica, the president of the trade body for the Philippine semiconductor industry, said 70% of its electronics exports are semiconductors and the new tariff rate would be “devastating”. Philippine stocks were down 0.1% after falling as much as 0.9% during the day.
Malaysia’s trade minister said the country has reached out to U.S. counterparts for clarity on the tariffs.
(Reporting by Ankur Banerjee and Rae Wee in Singapore and Shashwat Chauhan in Bengaluru; Editing by Christian Schmollinger and Arun Koyyur)
