TSMC's $2.77B Volume Surge Ranks 22nd as Stock Dips 2.73% Amid Trade Secret Probe

On August 5, 2025, TSMC (TSM) closed at a 2.73% decline, with a trading volume of $2.77 billion, marking an 80.57% increase from the previous day and ranking 22nd in market activity. The stock’s performance coincided with a high-profile investigation into alleged trade secret theft involving six individuals, including current and former employees. Prosecutors in Taiwan conducted home searches from July 25 to 28, focusing on whether sensitive data related to TSMC’s upcoming 2-nanometer chip process may have been compromised. The company confirmed internal detection of unauthorized access and initiated legal and disciplinary measures, though no evidence of external data transfer or competitive impact has been disclosed.

The incident has raised questions about TSMC’s ability to protect its intellectual property amid escalating global demand for advanced semiconductor technology. Analysts note that the 2-nanometer node is critical for maintaining the company’s lead in next-generation chip manufacturing, particularly as rivals like Intel and Huawei invest heavily in R&D. While the immediate operational impact remains unclear, the case underscores vulnerabilities in supply chain security for firms at the forefront of AI-driven innovation. TSMC’s swift internal response and lack of client disruption have so far limited market concerns, with analysts maintaining a cautiously optimistic outlook.

Strategies leveraging liquidity concentration have demonstrated significant returns in volatile markets. A backtest of purchasing the top 500 high-volume stocks daily and holding for one day generated a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This highlights the potential of liquidity-driven approaches to capitalize on short-term price movements, particularly during periods of heightened market instability. The results emphasize the role of trading volume as a proxy for investor activity and momentum in capturing market trends.