TSMC’s 0.56% Drop on $1.7 Billion Volume and 28th Trading Rank as U.S. Equity Stakes Spark Uncertainty

On August 21, 2025, TSMC (TSM) closed down 0.56% with a trading volume of $1.7 billion, a 56.35% decline from the previous day’s volume. The stock ranked 28th in trading activity for the day. Recent developments surrounding potential U.S. equity stakes in TSMC under the CHIPS Act have sparked market speculation, with Taiwan’s Minister of Economic Affairs J.W. Kuo confirming that Washington is exploring ownership stakes in semiconductor firms receiving subsidies. This aligns with the $6.6 billion in CHIPS Act funding allocated to TSMC in 2024, though Kuo emphasized that any such move would require rigorous review by Taiwan’s Department of Investment Review.

Kuo highlighted that the U.S. approach mirrors Beijing’s practice of holding state stakes in private firms, raising concerns about governance implications. While the Commerce Department finalized subsidies for TSMC, Samsung, and Micron, the potential for U.S. equity participation could influence TSMC’s operational autonomy. Kuo also noted ongoing discussions with TSMC and other subsidy recipients to assess the feasibility of such investments, adding uncertainty for investors. The minister’s remarks followed U.S. Commerce Secretary Lutnick’s statement suggesting Washington is evaluating board seats or operational influence in key chipmakers.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a 1.98% average daily return, with a total return of 7.61% over 365 days. The approach had a Sharpe ratio of 0.94, indicating favorable risk-adjusted returns, but faced a maximum drawdown of -29.16%, underscoring its vulnerability during market downturns.