China’s Trade Collapse Sparks an Asian Power Shift—Why TSMC Could Be the Biggest Winner

 

China’s Trade Collapse Sparks an Asian Power Shift—Why TSMC Could Be the Biggest Winner

China’s grip on U.S. imports has plunged to a 23-year low, with its share shrinking to just 7.1% in May, down sharply from last year. Meanwhile, Taiwan Semiconductor Manufacturing (TSM – NYSE) has surged to nearly 6% of U.S. imports, nearly neck-and-neck with China. This dramatic rerouting of supply chains is turning Taiwan—and its semiconductor powerhouse TSMC—into the focal point of global investment strategies.

As companies scramble to hedge geopolitical risks, investors are watching TSMC closely. The semiconductor giant is riding high on AI chip demand, recently posting a 35% revenue surge in Q1, driven by booming tech and AI momentum. Analysts point to continued upside as global producers diversify from China and Southeast Asian manufacturing gains pace.

With Washington imposing stricter tariffs, Vietnam and Taiwan have become alternate export hubs. However, Vietnam faces its own trade headache after the U.S. slapped a 40% tariff on goods with Chinese components. Meanwhile, TSMC remains resilient—its share price has climbed nearly 4% today, reaffirming its dominance in high-end chip fabrication.

This trade recalibration isn’t just about shifting manufacturing—it’s a tectonic shift in economic influence. As global orders flow into Taiwan and Southeast Asia, TSMC stands to benefit the most, reinforcing its place at the heart of tech innovation and investor focus—marking a new era in Asia’s economic landscape.