TSMC Stock Plunges 7.1% Amid U.S.-Taiwan Trade Tensions

On April 7, 2025, TSMC's stock price dropped by 7.1% in pre-market trading.

TSMC's stock price has been significantly impacted by the ongoing trade tensions between the U.S. and Taiwan. The potential imposition of tariffs on semiconductor exports has raised concerns among investors, leading to a sharp decline in the company's stock price. High levels of exposure to the U.S. market and the sensitivity of the supply chain in Asia have exacerbated these concerns. Despite TSMC's leadership position in the semiconductor industry and the growing demand for AI and technology, the short-term risks associated with trade tensions have overshadowed these positive factors. The situation remains fluid, and investors are closely monitoring developments in the trade negotiations and their potential impact on TSMC's business operations.

Analysts have noted that the semiconductor industry is currently exempt from tariffs, but the possibility of future tariffs has created uncertainty. The U.S. administration has indicated that tariffs on semiconductors could be announced soon, further complicating the situation for TSMC. The company's stock price has been volatile in recent weeks, reflecting the broader market's concerns about the potential impact of trade tensions on the semiconductor industry. Investors are advised to stay informed about the latest developments and to consider the potential risks and opportunities associated with TSMC's stock.