Taiwan Semiconductor (TSM) is implementing a structural shift by phasing out mature 8-inch wafer lines, a move expected to trigger price increases of up to 20% in 2026. The company is navigating this pricing strategy amid escalating geopolitical pressures and new trade challenges.
- Taiwan has reportedly refused to relocate 40% of production to the U.S. despite the imposition of new 13% import tariffs.
- Markets are evaluating whether the high demand for AI-driven performance can offset rising trade-related costs and regional instability.
- TSM shares closed at $360.39 on February 19, 2026, as investors weigh the impact of these structural and geopolitical shifts.