Why Taiwan Semiconductor Manufacturing Stock Stumbled Monday Morning

Core Viewpoint - TSMC faces significant challenges due to U.S. regulatory crackdowns on advanced chip sales to China, impacting investor sentiment despite the company's strong financial performance [2][3][5] Group 1: Company Challenges - Founder Morris Chang highlighted that TSMC is encountering its "most severe" challenges in achieving growth amid U.S. restrictions on advanced AI chip sales to China [2] - Chang stated that the "free trade of semiconductors, particularly the most advanced semiconductors, has died," indicating a shift in the competitive landscape [3] - TSMC has suspended shipments to Chinese chip company Sophgo after advanced processors were found in Huawei products, reflecting the regulatory pressures [3] Group 2: Positive Developments - CEO C.C. Wei expressed optimism about TSMC's semiconductor facility in Arizona, stating it is "progressing well" and reaffirming confidence in the company's technological leadership [4] - Despite regulatory challenges, TSMC reported third-quarter revenue of $23.5 billion, a 36$26.5 billion, representing a 35% year-over-year increase [5] Group 3: Market Position - TSMC produces approximately 90% of the world's most advanced processors, positioning the company favorably for AI-driven growth [6] - The company's stock is considered attractively priced at 27 times next year's growth, suggesting potential for investment [6]