trump's intel push rattles tsmc investors

2025-08-26 tsmc

Taipei, Tuesday, 26 August 2025.
tsmc’s stock price took a hit, briefly dropping to NT$1060, amidst reports of former President Trump’s efforts to boost Intel’s position. Investors are concerned that Intel might snatch orders from major tsmc clients like Apple and Nvidia. Experts suggest the long-term impact will be limited. The news creates short-term market jitters. Trump’s intervention could reshape the competitive landscape, potentially impacting billions in revenue.

initial market reaction

On August 25, 2025, TSMC’s stock experienced volatility, hitting a low of NT$1060 [1]. This fluctuation followed reports that former President Trump intends to support Intel, potentially enabling them to secure orders from Apple and Nvidia [1]. The US government’s investment of $8.9 billion in Intel, acquiring approximately 9.9% of its shares, has further fueled these concerns [1]. Of this investment, $5.7 billion is from the US CHIPS and Science Act, and $3.2 billion is from the secure area plan [1]. These developments have created uncertainty among investors regarding TSMC’s future prospects [1].

expert opinions and market outlook

Despite the immediate market reaction, some experts suggest that the long-term impact on TSMC will be limited [1]. Cai Minghan, a Cathay Securities Consulting Division Manager, stated that the AI trend remains strong [1]. He noted that the four major cloud service providers have increased their capital expenditures this year, projecting a total of $310 billion, a 40.909 40.91% increase from $220 billion in 2024 [1]. This indicates sustained demand for AI chips, a sector where TSMC holds a significant position [1].

tsmc’s competitive advantages

TSMC’s strength in the market was highlighted on August 25, 2025, when its stock rose by NT$35, closing at NT$1,170, with an intraday high of NT$1,180 [5]. This surge contributed approximately 294 points to the broader market index, underscoring TSMC’s significant influence in the Taiwan stock market [5]. Furthermore, foreign and Chinese investors showed strong interest in Taiwan stocks, with net purchases totaling NT$24.114 billion [5]. TSMC, as a leading stock, is a primary target for these investments [5].

geopolitical factors and strategic adaptation

TSMC has been navigating complex geopolitical dynamics, including former President Trump’s trade policies and tariffs on goods from China [1]. An industry expert noted that TSMC’s ability to adapt to the changing geopolitical landscape will be crucial for its future success [1]. On August 20, 2025, rumors of the U.S. government potentially acquiring shares in TSMC through subsidies caused the stock price to drop by NT$50, or 4.22%, closing at NT$1135 [4]. An unnamed senior analyst described the potential equity dilution as a direct and substantial negative for TSMC shareholders [4].

intel’s ambitions and government support

The U.S. government’s backing of Intel aims to bolster domestic chip production [1]. However, Ouyang Weitang, Vice President of KGI Investment Trust, expressed concern about the possibility of TSMC’s technology being used to assist Intel [4]. Despite these concerns, TSMC Chairman Wei Zhejia stated on August 22, 2025, after a dinner with Nvidia CEO Huang Renxun, that Nvidia has already announced they will not invest [1]. The US government clarified on August 24, 2025, that it would not acquire TSMC shares [1].

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