TSMC Stock Dips As Biden Reportedly Plans Another Round Of Export Curbs: Retail Wants To Buy The Dip Ahead Of Earnings

The push from the Biden administration follows revelations that TSMC-made chips were secretly supplied to Huawei despite existing restrictions.

U.S.-listed shares of Taiwan Semiconductor Manufacturing (TSM) dropped over 1% in pre-market trading on Wednesday after a report by Bloomberg indicated that there may be more chip export restrictions on the way before President Joe Biden’s term in office comes to an end. 

The new measures are expected to target TSMC, Samsung Electronics (SSNLF), and Intel Corp. (INTC), compelling them to tighten customer due diligence and ensure chips are not diverted to restricted entities like Huawei Technologies. 

The push follows revelations that TSMC-made chips were secretly supplied to Huawei despite existing restrictions.

Meanwhile, Intel’s shares edged 0.10% higher.

As per the report, the U.S. plans to mandate licenses for exporting chips at or below a threshold of 14-16 nanometers to China and other restricted nations. 

According to Bloomberg, the proposed rules could be unveiled as early as later today and aim to close loopholes in current semiconductor restrictions.

These measures build on broader export controls implemented earlier this week, which limited the sale of advanced AI chips by companies like Nvidia to Chinese data centers. 

Washington has been aggressively targeting supply chains to block access to advanced technologies for blacklisted Chinese firms.

On Stocktwits, retail sentiment around TSMC improved to ‘bullish’ from ‘neutral’ a day ago, while chatter remained at ‘high’ levels. 

Users on the platform weren’t particularly concerned about the incoming regulations. In fact, many were hoping for a dip so that they could buy the stock at a discount, expecting the shares to skyrocket on Friday once TSMC announces its quarterly earnings. 

One user even said President-elect Donald Trump may reverse all the last-minute changes Biden is bringing in once he takes office on Jan. 20.

TSMC reported record-breaking revenue of $26.36 billion for the December quarter, a 38.8% year-over-year increase that exceeded analysts’ expectations of $26.26 billion. For the full year 2024, the chip giant’s revenue rose nearly 34% year-on-year to $87.8 billion.

Detailed earnings are due on Friday. 

TSMC’s stock has nearly doubled in value over the last year. 

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