TSMC to invest $100bn in US manufacturing in attempt to ward off tariffs

Good morning and welcome again to FirstFT Asia. In in the present day’s e-newsletter:

• TSMC’s overture to Trump

• China’s $1 bubble tea chain soars in Hong Kong debt

• How massive is the inventory market’s America bubble?

US President Donald Trump has mentioned that Taiwan Semiconductor Manufacturing Firm is to take a position $100bn in superior manufacturing within the US because the world’s largest chipmaker tries to chase away doable tariffs on chips from Taiwan.

The funding was introduced yesterday when chief government CC Wei met Trump on the White Home.

The transfer is the newest overture by enterprise to Trump, as firms announce measures to placate the president amid his aggressive push to impose levies on US buying and selling companions.

TSMC has already dedicated $65bn to construct fabrication amenities in Arizona. It was not clear if the $100bn funding was a separate funding dedication or included a few of the cash beforehand pledged.

Trump has threatened to impose tariffs on imports of chips, which might have a dramatic influence on Taiwan’s financial system. Stress has been constructing on TSMC for months following the president’s repeated accusations that Taiwan “stole” the US semiconductor enterprise.

Read more about the measures Taipei has considered to appease Trump.

Right here’s what else we’re retaining tabs on in the present day:

• Financial information: Japan publishes the February shopper confidence survey and January labour power survey.

• Australia financial coverage: Reserve Financial institution board financial coverage assembly minutes revealed

• China’s ‘two classes’: The nation’s prime political advisory physique, referred to as the Chinese language Folks’s Political Consultative Convention, will begin its annual assembly in the present day, adopted by the Nationwide Folks’s Congress, China’s rubber-stamp parliament, tomorrow.

5 extra prime tales

1. Singapore has charged three males in a case believed to contain Nvidia semiconductor gross sales that doubtlessly breach US export controls, the federal government introduced yesterday. Two Singaporeans and one Chinese language nationwide had been amongst 9 individuals arrested final Wednesday as a part of raids on 22 areas throughout the city-state. Here’s what we know about the case.

2. Japanese retail big Seven & i Holdings is finalising plans to exchange present president and chief government Ryuichi Isaka with its first overseas boss, in accordance with individuals acquainted with the matter. Stephen Dacus, lead impartial director and head of the corporate’s particular committee chargeable for evaluating a $47bn takeover strategy from Canada’s Alimentation Couche-Tard, is likely to take the top job at the 7-Eleven owner.

3. Chinese language bubble tea big Mixue’s shares surged 43 per cent on their debut yesterday in Hong Kong’s largest itemizing of the yr up to now. Well-known in China for its distinctive snowman mascot and low cost merchandise, the corporate debuted within the Chinese language territory simply as mainland consumers adjust to an era of slower economic growth.

4. Donald Trump renewed his public assaults on Volodymyr Zelenskyy yesterday because the fallout from Friday’s White Home confrontation intensified additional. The US president additionally urged {that a} weekend of intense European diplomacy, together with a summit in London hosted by UK Prime Minister Sir Keir Starmer, had failed to improve Kyiv’s standing.

• European defence: Europe’s defence sector prolonged a blistering rally yesterday and the euro surged as buyers raised their bets that governments throughout the continent must enhance navy spending.

5. 4-year-old synthetic intelligence start-up Anthropic has raised $3.5bn in a deal that triples its valuation to greater than $60bn, because it goals to maintain tempo with OpenAI and forward of newer rivals resembling China’s DeepSeek. The funding spherical suggests that investors remain bullish concerning the potential for closely lossmaking AI start-ups to proceed their speedy progress.

Information in-depth

How massive is the inventory market’s America bubble? US shares’ large surge for the reason that international monetary disaster means they account for nearly two-thirds of the world’s investable market, pushed in recent times by the substitute intelligence growth. However a latest pullback in tech shares has underlined the rising nervousness round hovering valuations in a market that has swallowed an ever-larger share of global investors’ allocations.

We’re additionally studying . . . 

• Surveillance and paranoia in South Korea: In a nation haunted by a repressive past and threats from North Korea, Lee Chang-dong’s tales fuse the non-public with an inescapable politics.

• Nuclear vitality: Nations need to squeeze extra electrical energy from ageing power plants to assist meet international demand, however the technique has its personal challenges.

• Premier League: Richard Masters, chief government of the world’s most-watched soccer league, speaks to the FT on keeping the peace between its 20 ultra-competitive golf equipment.

Chart of the day

China’s prime political advisory physique will think about a proposal to lower the country’s marriage age to assist reverse falling beginning charges this week. The nation’s inhabitants fell for the primary time in six many years in 2022 and has declined every year since.

Take a break from the information . . . 

From Demise Star to Raccoon Ft, have quirky assembly room names gone too far? The practice can backfire, particularly when shoppers or colleagues will not be in on the joke.