TSMC shares fell during a global semiconductor sell-off as investors exited high-valuation AI stocks. An ongoing U.S. International Trade Commission (ITC) patent infringement investigation further pressured the stock. The ITC expects to issue a preliminary ruling by the end of June.
This investigation carries the risk of a U.S. import ban on chips using specific advanced technologies. Strong AI-driven demand continues to support the company's long-term outlook. TSMC is currently in high-volume manufacturing for its 2nm process technology. The company plans to scale more advanced nodes in late 2026 to serve the high-performance computing and AI markets.