TSMC Stock Plummets 0.88% as Trading Volume Drops 26.46% to $1.95B Ranking 34th in Market Activity Amid U.S. Semiconductor Turmoil and Trump Tariff Fears

On August 15, 2025, TSMC (TSM) closed at $238.88, down 0.88% as trading volume declined by 26.46% to $1.95 billion, ranking 34th in market activity. The decline came amid broader U.S. semiconductor sector volatility linked to geopolitical and policy developments.

Analysts highlighted shifting dynamics in the U.S. chip manufacturing landscape as a key factor. Reports indicated the Trump administration was exploring government-backed investments in Intel to bolster domestic production, potentially redirecting advanced chip orders from TSMC. Mizuho Securities noted this could pressure TSMC’s foundry business if U.S. fabless firms are incentivized to shift production to Intel, though Intel lags TSMC in cutting-edge node technology. Intel’s stock rose over 2.9% on the news, contrasting with TSMC’s decline.

Geopolitical risks further weighed on sentiment. Trump’s proposed tariffs on semiconductors, including potential 300% rates, triggered sector-wide declines. The Philadelphia Semiconductor Index (SOX) dropped 2.3% as investors anticipated regulatory uncertainty. While TSMC’s U.S. manufacturing expansion in Arizona faces competition from Intel’s delayed Ohio plant, the broader trade policy environment remains a critical variable for both firms.

A backtested trading strategy of holding the top 500 volume stocks daily from 2022 to present generated $10,720 in cumulative profit, reflecting modest gains amid market fluctuations. The results underscore the challenges of capitalizing on short-term volatility in a sector increasingly shaped by policy-driven shifts and technological competition.