Taiwan Semiconductor Manufacturing Company (TSMC) Announces $100 Billion Investment in the U.S.

After TSMC announced a $100 billion investment in the United States, housing market experts warned that the “TSMC concept housing” may find it difficult to recreate past glory, with a significant outflow of talent to the U.S. expected.

(Background: U.S. Customs seized Bitcoin mining machines, mistakenly identifying them as Huawei radio frequency equipment, leading to TSMC being informed of a ban; these machines have now been fully released, which will benefit mining companies.)

(Supplementary Background: Trump called for the termination of the $52 billion chip subsidy program, stating he does not want to give TSMC a dime…)

TSMC’s Stock Performance

After opening lower today, TSMC’s stock closed below the NT$1,000 mark, finishing at NT$998 per share, hitting a five-month low. Although the company reported consolidated revenue of NT$260.9 billion for February, a year-on-year increase of 43.1%, marking a historical high for the same period, the month-on-month decline of 11.3% compared to January raised concerns in the market about the short-term growth momentum.

In the increasingly pessimistic market atmosphere, some users on the Taiwan stock investment forum began to voice their concerns, saying things like, “Call me at 950,” “Let’s talk at 80,” and even bluntly stating, “This year, a drop to 800 is not ruled out.”

Typically, February revenues decline compared to January due to fewer working days; however, this year’s concerns about TSMC extend beyond short-term financial figures, focusing on its global strategy, progress in U.S. factory construction, and capital expenditure plans, all of which will influence future stock price trends.

Concerns Over TSMC’s Impact on the U.S. Housing Market

Moreover, with TSMC’s announcement of a $100 billion investment in the U.S., the market is beginning to worry whether “TSMC concept housing” can continue to rise. Notable investor “Shuai Guo Tou” recently warned that TSMC’s construction of six fabs, two assembly and testing plants, and one R&D center in the U.S. will inevitably lead to a manpower transfer from Taiwan.

He added that a TSMC factory could generate 8,000 downstream job opportunities, resulting in a much larger outflow of Taiwanese talent to the U.S. than anticipated. Under the backdrop of declining demand, a 30% drop in housing prices over the next decade is reasonable.

In the past, TSMC’s factory constructions drove up housing prices due to high demand from employees and subcontractors. However, with a large number of senior engineers likely to be assigned to the U.S., this may change the home-buying patterns of TSMC employees, who may no longer buy “three or four houses at once,” and might even gradually release properties, affecting market confidence.

Identifying Four Counties and Seven Potentially Affected Areas:

• Hsinchu, Zhubei: Previously the biggest beneficiaries; however, with future manpower migration, housing prices may first correct.
• Taichung, Shalu, Daya: Prices have risen due to investment fervor, but the fundamentals have not stabilized.
• Tainan, Guiren, Yongkang: Popular areas around the Southern Taiwan Science Park, but prices could loosen if demand decreases.
• Kaohsiung, Nanzi: Benefited from TSMC’s expansion, but housing prices will be affected if investor confidence wavers.

In summary, Shuai Guo Tou believes that investors holding “TSMC concept housing” should sell once the tax period arrives, as future price increases are unlikely, and investors should refocus their attention on major cities.

TSMC Hiring 8,000 People with an Average Annual Salary of NT$2.2 Million

This week, TSMC will participate in the National Taiwan University campus job fair, officially launching its 2025 recruitment plan, announcing that it will recruit 8,000 new employees, with an average annual salary of NT$2.2 million for master’s degree engineers.

TSMC stated that it will hold physical recruitment events at 19 universities across Taiwan this year, aiming to attract international talent. Future job locations include key technology hubs in Taoyuan, Hsinchu, Miaoli, Taichung, Chiayi, Tainan, and Kaohsiung. The market will continue to monitor “how many people TSMC will hire,” “how many will be sent to the U.S.,” and “whether this will affect changes in housing demand?”

Further Reading: Is TSMC becoming American Semiconductor Manufacturing Company? Minister of Economic Affairs guarantees advanced processing will remain in Taiwan; experts estimate that the proportion of domestic production will decline by 15-20%.