Taiwan Semiconductor Manufacturing Co (NYSE:TSM) stock is trading lower on Monday after Tesla Inc (NASDAQ:TSLA) CEO Elon Musk confirmed signing a $16.5 billion chip manufacturing deal with the Taiwanese contract chipmaker rival Samsung Electronics Co (OTC:SSNLF).
Musk tweeted that Samsung will build the EV giant’s next-generation AI6 chip at its massive new Texas fab, underscoring the project’s critical strategic value.
Samsung already manufactures the current AI4 chip, Musk tweeted.
He also tweeted that Taiwan Semiconductor will produce the AI5 chip — now finalized — intially in Taiwan before shifting to Arizona.
Also Read: How Taiwan Is Betting Big On AI To Power Its Economy
Taiwan Semiconductor stock surged 23% year-to-date, gaining over 48% in the last three months as the industry grappled with changing regulatory dynamics.
The White House launched “Winning the AI Race: America’s AI Action Plan” on Wednesday, fulfilling President Donald Trump’s January executive order to boost U.S. leadership in artificial intelligence. The plan outlines over 90 federal actions focused on accelerating innovation, expanding AI infrastructure and strengthening global AI leadership.
The administration will also streamline regulations, modernize permitting for data centers and chip plants and invest in workforce training for AI-driven industries.
The semiconductor sector rebounded, recovering losses from Tuesday’s drop tied to delays in the $500 billion. Stargate project. The semiconductor industry took a hit after reports revealed major setbacks in the $500 billion Stargate AI project. Disputes between OpenAI’s Sam Altman and SoftBank’s Masayoshi Son stalled progress, triggering doubts and dragging chipmaker shares lower.
TSM Price Action: Taiwan Semiconductor stock is down 1.44% at $242.07 at publication on Monday.
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