TSMC shares slide as global tech sell-off deepens

TSMC ↗0.95% shares dropped as a global tech sell-off intensified, with Taiwan’s TAIEX falling over 2% on Wednesday.tradingeconomics
The sell-off hit chip stocks hard, with South Korea’s Kospi plunging 10% Tuesday as Samsung and SK Hynix each lost more than 12%.cnbc
A U.S. ITC patent investigation into TSMC’s advanced chipmaking processes is nearing a preliminary ruling, with a final decision expected in October.ajupress

TSMC Stock Drops Amid Global Tech Sell-Off and ITC Patent Probe

Shares of Taiwan Semiconductor Manufacturing Co. fell sharply on Wednesday as a global technology sell-off that began earlier in the week deepened, compounded by investor concerns over an active U.S. International Trade Commission patent investigation into the chipmaker’s advanced processes.

TSMC’s -listed American depositary receipts declined nearly 6% on Tuesday’s session, according to CNBC data, dragging the stock further from a 52-week high reached earlier in June. Taiwan’s main stock market index, the TAIEX, fell 2.22% on Wednesday as selling pressure continued.cnbc

Sector-Wide Rout

The decline is part of a broader technology unwind that has swept across global markets. On Tuesday, South Korea’s Kospi plunged 10%, dragged down by Samsung Electronics and SK Hynix, both of which lost more than 12%. The Nasdaq Composite fell over 2% on the day, while the S&P 500 lost 1.4%.cnbc

Reuters reported that the sell-off reflected investors capitalizing on a lengthy rally while preparing for a more hawkish Federal Reserve under Chair Kevin Warsh, with markets now pricing in a rate hike by September. Semiconductor stocks including Micron, Arm, and Nvidia all posted steep losses.nbcnews

ITC Patent Investigation Adds Pressure

Amplifying concerns, TSMC faces a Section 337 investigation by the U.S. International Trade Commission, initiated in March 2025 after Irish companies Longitude Licensing and Marlin Semiconductor filed a complaint alleging that semiconductors produced using TSMC’s advanced processes infringe their patents. A preliminary ruling from an ITC administrative law judge is expected later this month, with a final decision anticipated in October.ajupress

If the commission rules against TSMC, it could impose an exclusion order blocking imports of certain chips into the United States. Taiwan’s intellectual property office has characterized the complainants as “patent trolls seeking licensing fees or settlement money”.youtube

Outsized Market Impact

TSMC accounts for over 40% of the Taiwan Stock Exchange’s total capitalization and carries a 14.2% weight in the MSCI Emerging Markets Index. With the Philadelphia Semiconductor Index having surged roughly 69% year-to-date through mid-May, the correction has hit the sector with force after what analysts described as a market that had become “very fluid”.stocksdownunder