Steve Weiss Trims Taiwan Semi Position Amid Geopolitical Concerns

Reasons for Trimming Taiwan Semi

• 📉 Steve Weiss has trimmed his position in Taiwan Semiconductor Manufacturing Company (TSMC), though it remains his largest holding.
• 💡 The decision stems from the stock having "gotten too big" and a perceived incongruity in the market.

Geopolitical Risks and Market Incongruity

• ⚠️ A primary concern is the potential for conflict in China, with Taiwan being at ground zero.
• 📈 Despite this risk, TSMC's stock has been performing well, which Weiss finds incongruous, especially when compared to rising defense stocks.
• 🎯 Defense stocks like Lockheed and Northrop are up due to increased missile production for Ukraine and Israel, and anticipation of conflict in China.

Onshoring Challenges and Tariffs

• 📌 TSMC and Micron face challenges with their onshoring plans in the US.
• 💰 Initially, they assumed they could export products from the US, but now face potential tariffs on outgoing products, leading to downsizing of these plans.
• 🚫 The president is reportedly considering tariffs on foreign electronics based on chip numbers, adding another layer of complexity.