tsmc faces investor jitters amid chip shortage

2025-07-01 tsmc

taipei, Tuesday, 1 July 2025.
tsmc, the world’s largest semiconductor foundry, is feeling the squeeze from the global chip shortage. A significant 36.93% drop in trading volume signals investor unease. Supply chain disruptions and fluctuating demand are impacting tsmc’s near-term performance. The company is investing heavily in r&d and expanding its global footprint with a new fab in arizona. These efforts aim to maintain its competitive edge during these turbulent times.

Stock performance and market reaction

On June 30, 2025, TSMC’s trading volume experienced a notable decrease of 36.93% compared to the previous day, positioning it at the 30th rank in the stock market for that day [1]. Simultaneously, the stock price of TSMC (TSM) saw a decline of 0.92% [1]. This volatility reflects investor concerns regarding supply chain disruptions and the potential impact on the company’s revenue, as highlighted in a recent earnings report [1]. Investors are closely watching how TSMC navigates these challenges and adapts its strategies to ensure long-term stability and growth [GPT].

Capacity expansion and talent acquisition

To mitigate risks and enhance its production capabilities, TSMC is actively expanding its global footprint [1]. A key component of this strategy is the construction of a new fabrication plant in Arizona, which is projected to generate numerous employment opportunities and stimulate economic growth in the region [1]. However, the expansion faces challenges, including a shortage of skilled engineers and technicians [7]. TSMC is investing $5 million in technician training programs in collaboration with the Commerce Department and the Arizona Commerce Authority to address this issue [7].

Broader market trends and analyst perspectives

The broader taiwan stock market experienced a downturn, influenced significantly by TSMC’s performance [3]. On June 30, the market closed down by 324.06 points, a 1.43% decrease, with a total trading volume of approximately 354.2 billion new taiwan dollars [3]. Despite this, analysts remain optimistic about the market’s future, citing the potential for continued capital inflow due to a weaker US dollar and a rising new taiwan dollar [3]. They suggest investors monitor AI-related stocks with strong revenue and financial reports [3].

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semiconductor shortage tsmc trading volume