Taiwan-US Trade Deal, Here's What it Means for Taiwan Semiconductor Manufacturing (TSM)

​Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Best Performing Foreign Stocks to Buy Now. On February 13, Reuters reported that Taiwan and the US have reached a trade agreement based on the January framework. The deal aims to balance the trade between the two countries amidst Taiwan’s surging exports of AI chips.

​According to the report, the United States has lowered the tariff on Taiwanese imports from 20% to 15%, matching the rates of South Korea and Japan. This will protect the tech giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), which exports chips to the US. In addition, the Taiwanese government also pledged to invest more than $250 billion in the US semiconductor, energy, and AI production, which includes the $100 billion investment by TSMC reported in January.

Separately, on February 13, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was initiated with a Buy rating by Gil Luria of D.A. Davidson and a $450 price target. The analyst likes the company’s competitive edge in advanced semiconductor manufacturing, particularly as the demand continues to surge. The firm highlighted the “compounding execution moat in leading-edge manufacturing” of TSMC, noting that it provides the company with “durable, self-reinforcing advantage.”

​Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM), together with its subsidiaries, manufactures, packages, tests, and sells ICs and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the US, and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.