Bloomberg Daybreak: Asia Edition US-Taiwan Trade Deal, TSMC's Wendell Huang on Q4 Earnings
Jan 16, 2026
Rob Hayworth, Senior Investment Strategy Director at U.S. Bank, shares insights on market trends in equities and bonds, plus the implications of the U.S.-Taiwan trade pact. Wendell Huang, CFO of TSMC, delves into the company’s impressive Q4 earnings and its plans for U.S. expansion, driven by an aggressive $52–$56 billion CapEx amid rising AI demand. Both discuss the importance of technology transfer between Taiwan and the U.S., and Huang emphasizes a straightforward approach to managing foreign exchange risks.
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Trade Deal Lowers Tariffs And Spurs US Chip Investment
- The US-Taiwan trade deal lowers tariffs to 15% and aligns Taiwan with Japan and South Korea.
- It also ties Taiwanese chip investment to $250 billion toward US energy and AI operations.
TSMC's Big CapEx Signals AI Confidence
- TSMC plans $52–$56 billion in CapEx for 2026, exceeding market expectations by 15–20%.
- The ramp signals strong confidence in sustained AI-related chip demand.
Rotate Into Small Caps Benefiting From AI Use Cases
- Rob Hayworth attributes small-cap rotation partly to lower Fed rate costs and broadening AI beneficiaries.
- Seek exposure where AI use-cases expand, notably healthcare and other earnings beneficiaries.