TAIPEI (TVBS News) — Taiwan Semiconductor Manufacturing Company (TSMC, 台積電), the world's leading chipmaker, saw its shares plummet to NT$848 (about US$25.54) on Monday (April 7), fueling a steep 686.82-point decline in Taiwan's benchmark stock index. The semiconductor giant faced relentless selling pressure with over 110,000 shares queued for sale as panicked investors rushed for the exits. The dramatic sell-off slashed the company's market capitalization to NT$21.99 trillion (approximately US$662.35 billion), delivering a significant blow to Taiwan's technology-dominated market.
The market turmoil erupted in the wake of U.S. President Donald Trump's sweeping announcement of global tariffs, which sent shockwaves through international markets despite a temporary exemption for semiconductor products. TSMC faced particularly intense selling pressure as the Taiwanese stock market reopened following the four-day Tomb-Sweeping Day holiday, with investors responding to accumulated global market anxieties. This marks TSMC's second significant downturn since last August, with market analysts estimating that stabilizing the current selling pressure would require an injection of capital exceeding NT$100 billion (approximately US$3.01 billion) to restore investor confidence.
President Trump, addressing reporters aboard Air Force One on Sunday U.S. local time, insisted that the global market downturn was not his intended outcome, instead framing the economic turbulence as necessary short-term pain. "I don't want anything to go down. But sometimes you have to take medicine to fix something," he said, comparing the market reaction to a therapeutic intervention. Meanwhile, U.S. Commerce Secretary Howard Lutnick heightened industry anxieties by outlining plans to relocate semiconductor manufacturing from Taiwan to American soil, while ominously suggesting the possibility of future tariffs specifically targeting semiconductors—a move that has intensified tensions throughout the global technology supply chain.
The semiconductor sector's vulnerability became starkly apparent last Friday when the Philadelphia Semiconductor Index plunged 7.6%, while TSMC's American Depositary Receipts (ADR) tumbled 6.7% on U.S. exchanges. These sharp single-day losses contributed to devastating weekly declines exceeding 16% for the semiconductor index and 11% for TSMC's ADRs. Adding to the uncertainty, industry rumors have intensified regarding a potential joint venture between TSMC and Intel to establish a new wafer fabrication facility on American soil. When questioned about these reports, TSMC carefully reaffirmed its commitment to Intel as a key client while conspicuously avoiding any direct comment on the joint venture speculation.
