TAIPEI (TVBS News) — Taiwan Semiconductor Manufacturing Company (TSMC, 台積電), the world's largest contract chipmaker and a critical supplier to Apple and NVIDIA, saw its shares dip in choppy trading Monday (June 16), closing at NT$1,025 (about US$34.61), down NT$5 (approximately US$0.17) or 0.49%. Market analysts pointed to a confluence of global factors affecting the semiconductor giant's stock performance, including a broader correction in U.S. technology equities, strategic repositioning by foreign institutional investors, and heightened geopolitical uncertainties stemming from escalating tensions between Israel and Iran.
Market sentiment surrounding Taiwan's semiconductor flagship has turned noticeably cautious in recent sessions, with institutional selling pressure slightly outpacing buying interest amid global market volatility. Financial analysts emphasized that the current selling pattern appears primarily driven by portfolio rebalancing and tactical capital position adjustments rather than any deterioration in the company's business outlook. The underlying fundamentals of TSMC remain exceptionally strong, analysts maintain, bolstered by seemingly insatiable global demand for advanced chips powering artificial intelligence applications and high-performance computing (HPC) systems that form the backbone of next-generation technology infrastructure.
Following its recent ex-dividend date, when TSMC's share price typically adjusts downward, the semiconductor giant has yet to demonstrate the robust recovery investors have come to expect from the industry leader. Nevertheless, production metrics continue to impress industry observers, with demand for the company's most advanced chip manufacturing processes remaining exceptionally strong and factory utilization rates maintaining near-capacity levels. Major financial institutions have maintained bullish forecasts, projecting TSMC's earnings per share could reach approximately NT$55 (about US$1.86) in 2025, a figure that suggests the company's medium and long-term growth trajectory remains firmly intact despite short-term market fluctuations.
Investors and financial institutions across Asia are maintaining heightened vigilance over three key external factors that could significantly influence TSMC's share performance in coming sessions: the daily movements of technology stocks on U.S. exchanges, particularly semiconductor peers like Nvidia and AMD; fluctuations in the Taiwan dollar's exchange rate, which affects the competitiveness of Taiwan's export-oriented tech sector; and the evolving geopolitical situation in the Middle East, where any escalation could trigger broader market volatility and disrupt global supply chains critical to the semiconductor industry. ◼