TSMC Shares Plunge 0.50% Intraday as U.S. Export Curbs Spur Geopolitical Concerns

Taiwan Semiconductor Manufacturing Company (TSMC) shares fell to their lowest level since October 2025 on October 2, 2025, with an intraday decline of 0.50%. The stock closed down 0.12%, reflecting heightened investor caution amid ongoing geopolitical and regulatory pressures.

The decline follows a series of U.S. export restrictions targeting TSMC’s operations in China, which have disrupted its ability to supply advanced chip-making equipment to Chinese clients. The U.S. government revoked TSMC’s “validated end user” status for China and imposed stricter licensing requirements for shipments to the region. These measures, part of broader efforts to limit China’s access to cutting-edge semiconductor technology, have raised concerns about TSMC’s operational flexibility and revenue stability in a critical market.

Geopolitical tensions between the U.S. and China have intensified, with TSMC caught in the crossfire of the “chip war.” The company’s role as the sole manufacturer of 3nm and 5nm chips for global clients has drawn regulatory scrutiny, particularly after a compliance breach involving Huawei. TSMC voluntarily suspended shipments to a Chinese chip designer linked to Huawei, drawing warnings from U.S. authorities about potential penalties for export violations. Analysts note that while China is investing in domestic chip production, TSMC’s technological leadership remains unmatched in the short term.

Despite these challenges, TSMC’s robust financial position and strategic initiatives provide a counterbalance. The company has maintained strong revenue growth and a resilient balance sheet, allowing it to fund R&D and expand into new markets. Recent efforts to develop proprietary systems for managing trade secrets in Europe highlight its focus on addressing global concerns over intellectual property. Analysts remain cautiously optimistic, citing TSMC’s long-term growth potential in AI and high-performance computing, even as short-term volatility persists due to regulatory uncertainty.