TSMC Stock Plunges 7.8% Amid Tariff Fears, Intel Partnership Doubts

On April 7, 2025, TSMC's stock price dropped by 7.8% in pre-market trading, reflecting significant market concerns and volatility.

The recent decline in TSMC's stock price can be attributed to the ongoing impact of U.S. tariffs on Taiwanese exports. The market's sensitivity to potential tariffs on semiconductors has led to heightened concerns about TSMC's exposure to the U.S. market and its supply chain vulnerabilities. This has overshadowed the long-term positive outlook on TSMC's leadership in the semiconductor industry and the growing demand for AI and technology.

Additionally, the market has been closely monitoring the potential collaboration between TSMC and Intel. While there are hopes that this partnership could address Intel's challenges in advanced manufacturing processes, analysts have expressed skepticism about its feasibility. The significant differences in manufacturing processes between the two companies and the potential risks to shareholders have raised doubts about the success of this venture.