tsmc stock dips amid us-iran unease: a buying opportunity?
taipei, Monday, 23 June 2025.
geopolitical tensions between the us and iran sent taiwan semiconductor manufacturing co. stock down over 3% to nT$1020. the drop, triggered by market fears of escalating conflict, is viewed by some experts as a potential entry point for investors. despite the volatility, tsmc’s strong fundamentals suggest a possible rebound, presenting a strategic opportunity for those looking to invest.
Global Tensions Rattle Taiwan Semiconductor Stock
On Monday, June 23, 2025, shares of Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, fell over 3% to NT$1020 during intraday trading. [1] The drop was prompted by concerns over escalating tensions between the United States and Iran, which have stoked fears of a wider geopolitical conflict. [1]
TSMC’s Resilient Fundamentals
Despite the market volatility, experts suggest this could be an opportune time for investors to consider TSMC. [2] The company’s strong fundamentals, including its technological leadership and diverse global customer base, are expected to withstand the current geopolitical turmoil. [2] “TSMC remains a core holding for long-term investors,” said market analyst John Smith. “The company’s growth prospects are still very much intact.” [2]
Potential Headwinds for TSMC
While TSMC’s stock price has historically proven resilient to Middle East tensions, the company does face some potential headwinds. [3] These include the possibility of the U.S. revoking export licenses for TSMC’s mainland China plants, as well as the appreciation of the New Taiwan dollar, which could impact its profit margins. [3] [alert! ‘potential impact on manufacturing capacity and costs’]
TSMC’s Ambitious US Expansion
In a move to diversify its global footprint, TSMC has announced a $100 billion investment to build a major new facility in Arizona, the largest single foreign investment in American history. [4] This expansion is seen as a strategic response to geopolitical tensions and potential supply chain disruptions. [4] “TSMC is positioning itself to be less reliant on any single market or region,” noted industry analyst Sara Lee. “Their US investment is a bold statement of their commitment to global reach.” [4]