TSMC Stock Drops 2.94% Amid US-China Chip Ventures

Generated by AI AgentAinvest Movers Radar
Wednesday, Apr 16, 2025 5:03 am ET1min read

On April 16, 2025, TSMC's stock price dropped by 2.94% in pre-market trading, reflecting investor concerns and market volatility.

Recent developments have raised concerns about the future of Taiwan's semiconductor industry, particularly

. Reports suggest that TSMC and have reached a preliminary agreement to establish a joint venture for chip manufacturing, with TSMC holding a 20% stake. Additionally, Taiwan's United Microelectronics Corporation (UMC) is reportedly in talks with U.S.-based GlobalFoundries to form a new company, with the ultimate goal of replacing TSMC.

These moves have sparked worries within Taiwan's business community about the potential for the U.S. to hollow out the island's semiconductor industry. The concerns are not unfounded, as TSMC has become a key player in the geopolitical strategies of both Taiwan and the U.S. The potential loss of TSMC's dominance in the semiconductor market could have significant implications for Taiwan's economy and its technological future.

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