TSMC stock price plummets! China’s supply of 7nm AI chips halted, will prices continue to fall under Trump’s trade? Author Investment Insights

Investment Insights – Trump’s trading boom continues, with Tesla’s stock price rising and TSMC’s stock price falling.

On November 12, TSMC (2330) stock price plunged at the opening, falling 2.76% to NT$1,055 as of press time.

Overnight, Taiwan Semiconductor Manufacturing Company (TSM) US stocks fell 3.55% to US$194.05.

[Source: TradingView; TSMC (2330) stock price trend]

On the news, according to foreign media reports, the U.S. Department of Commerce sent a letter to TSMC, requesting that it stop supplying AI chips with 7 nanometer and more advanced processes to customers in mainland China starting from the 11th.

TSMC did not directly deny it: “The company is law-abiding and strictly abides by all laws and regulations, including applicable export control regulations.”

In addition, Trump’s trading boom continues. Tesla rose 9% overnight, with its total market value reaching US$1.1 trillion, surpassing TSMC and ranking seventh in the US stock market.

According to sources, the latest control measures are limited to AI/GPU-related chips, and chips used in mobile phones, automobiles and communications will not be affected.

Analysts pointed out that mainland customers account for only 11% of TSMC’s revenue, and most of them are also focused on non-AI fields. The ban will have little impact on TSMC.

However, if export controls are expanded, the impact on TSMC’s profits in 2025 is estimated to be about 5% to 6%.

In addition to export controls, Trump will also put pressure on TSMC on tariffs in the future. Amid Trump’s trading craze, TSMC’s stock price may continue to be under pressure in the short term.

Original link