TSMC Stock Plunges 4.39% Amid U.S. Investment Concerns

On April 4, 2025, TSMC's stock price dropped by 4.39% in pre-market trading, reflecting investor concerns and market volatility.

TSMC's recent announcement of a $1000 billion investment in the United States, aimed at building five new advanced chip factories and establishing a research and development center, has not been well-received by investors. This significant investment is part of a broader strategy to expand TSMC's presence in the U.S. market, following previous commitments to build three additional chip factories in the country. The total investment in the U.S. now stands at $1650 billion, making it the largest single foreign direct investment in U.S. history.

However, the investment has been met with skepticism from investors, who are concerned about the potential impact of U.S. trade policies on TSMC's operations. The recent imposition of a 32% tariff on Taiwan by the U.S. has raised questions about the long-term viability of TSMC's investments in the region. The tariff, which was announced as part of a broader set of measures aimed at addressing trade imbalances, has been criticized by some analysts as a potential deterrent to future investments in the U.S. market.

Despite these concerns, TSMC has continued to pursue its expansion plans in the U.S., with the company's CEO, C.C. Wei, stating that the investment is driven by customer demand. However, some analysts have suggested that the investment may be motivated by a desire to avoid potential tariffs on TSMC's products in the U.S. market. The company's decision to invest in the U.S. has also been seen as a strategic move to strengthen its position in the global semiconductor market, as it seeks to expand its customer base and diversify its revenue streams.