Shares of Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) just hit an all-time high, climbing 4.89% to NT$1,180, after officials confirmed the chip giant won't be subject to a proposed 100% US tariff on semiconductor imports. The reason? TSMC's deepening roots in Arizona. The company recently boosted its US commitment to $165 billion, including three fabs, two advanced packaging facilities, and an R&D center. Taiwan's National Development Council chief Liu Chin-ching said plainly: if you're building in the US, you're in the clear a message that echoed former President Donald Trump's own remarks about favoring companies that invest locally.

The market reaction was swift. Foreign equity inflows surged, pushing the Taiwan dollar up nearly 0.9% intraday and lifting the broader stock index by 2.4% outpacing regional peers. Khoon Goh, head of Asia research at ANZ, said investors had been on edge awaiting clarity on the chip tariff rate. With TSMC exempt, a major risk overhang may be off the table at least for Taiwan's most important stock, which now makes up close to 40% of the nation's benchmark index. The company's role in powering AI infrastructure worldwide only adds to investor conviction.

Other chipmakers may not be as lucky but some could still find shelter. United Microelectronics is working closely with Intel (NASDAQ:INTC), which may soften the blow. Meanwhile, Samsung's Texas fab and Apple's US supply chain commitments put them in strong positions. Malaysia, another chip hub, is seeking clarity from Washington, though its prime minister said the impact could be limited given many of the firms operating there are US-based. The message for global chipmakers is becoming clearer: plant your flag in America or risk being priced out.