0254 GMT - TSMC customers could ship as many chips as possible during the 90-day tariff pause, Morningstar's Phelix Lee says in a research note. The analyst thinks TSMC's 2Q sales guidance of 12% sequential growth is exceptionally strong, which could mean that customers are shipping more before President Trump's reciprocal tariffs hit. The tariff effects could be felt in 2026, when current inventories are depleted, he says. Morningstar thinks tariffs will lead to a 4% hit to TSMC's revenue next year in non-AI segments, with minimal change to the structural outlook. "The market may have underestimated the fall in demand for consumer electronics if sectoral tariff turn out to be higher than the 25% levied on automotive parts," he adds. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
April 20, 2025 22:55 ET (02:55 GMT)
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