TSMC Shares Weather Regulatory Storm as AI Growth Momentum Continues

Strong Fundamentals Outweigh Limited Nanjing Impact

Despite facing new regulatory headwinds from the United States, Taiwan Semiconductor Manufacturing Company (TSMC) is demonstrating remarkable resilience. The recent revocation of expedited licensing for equipment imports to its Nanjing facility in China initially rattled investors, but the chipmaker’s shares have shown surprising strength, prompting questions about what’s driving this stability beyond mere optimism.

The revoked export licenses affect TSMC’s manufacturing operations in Nanjing, which represents a relatively minor component of the company’s overall production capacity. According to analysis from Macquarie Group, the Nanjing facility accounts for just 3% of TSMC’s total capacity and primarily focuses on producing less profitable 16nm and 28nm chips.