On October 10, 2025, TSMC stock fell sharply, dropping 4.62% to 4.78% after the US government revoked export waivers allowing the use of US-origin technology in China, raising concerns about supply chain disruptions and regulatory uncertainty. The situation was compounded by China's new restrictions on rare earth exports, further complicating semiconductor production. Despite these headwinds, TSMC reported stronger-than-expected Q3 sales, supported by robust demand for Nvidia’s Blackwell chips and early orders ahead of potential tariffs. Analysts note that the immediate financial impact is limited due to the small contribution of TSMC’s Nanjing plant, but the regulatory environment has increased caution among investors.
TSMC Shares Drop on US Export Waiver Revocations and China Rare Earth Restrictions
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