TSMC Stock Drops 3.96% Amid US Expansion Concerns

On April 3, 2025, TSMC's stock price dropped by 3.96% in pre-market trading, reflecting investor concerns and market volatility.

TSMC, the world's leading semiconductor foundry, has been expanding its operations in the United States, which has raised concerns about its strategic focus and potential impact on its market position. The company initially planned to invest $120 billion in the U.S. to build a 5nm chip factory, but this investment has since increased to $650 billion, covering 5nm, 3nm, and 2nm chip factories. This expansion has led to speculation that TSMC is shifting its focus away from Taiwan, potentially impacting its market share and technological leadership.

Additionally, TSMC's expansion in Japan has also been a topic of discussion. The company's subsidiary, JASM, has been actively recruiting new employees for its operations in Japan, with a significant increase in hiring for 2025. This expansion in Japan is part of TSMC's broader strategy to diversify its manufacturing base and reduce its reliance on a single location. However, this move has also raised questions about the company's long-term commitment to Taiwan and its impact on the local economy.

Furthermore, the geopolitical tensions between the U.S. and Taiwan have added to the uncertainty surrounding TSMC's operations. The U.S. has imposed tariffs on Taiwanese imports, which could impact TSMC's supply chain and production costs. This has led to concerns about the potential disruption of TSMC's operations and its impact on the global semiconductor industry. Investors are closely monitoring the situation and its potential impact on TSMC's stock price and market position.