TSMC's $100 Billion U.S. Investment

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest semiconductor manufacturer, has announced a massive $100 billion investment in U.S.-based chip production facilities. CEO C.C. Wei made the announcement alongside former President Donald Trump, marking a significant shift in global semiconductor manufacturing. This investment, which expands TSMC’s footprint in Arizona, is poised to reshape the competitive landscape of the semiconductor industry, but it also comes at a time of uncertainty in the stock market.

The Impact of TSMC’s Expansion
TSMC’s commitment to invest $100 billion will fund the construction of three new chip fabrication plants, two advanced packaging facilities, and a cutting-edge research and development center. This will bring the company’s total investment in its Arizona complex to $165 billion.

Former President Trump emphasized the importance of this investment, stating, “The most powerful AI chips in the world will be made right here in America. It’s a matter of economic security, and it’s also a matter of national security.”

Technical Analysis
In Tuesday’s trading session, TSM showed signs of recovery, rising 1.78%. The stock is currently testing a critical one-month low support level. A break below this level could trigger a selling spree, especially given broader market weakness. However, technical indicators suggest potential for upside movement:

The stock is approaching oversold territory, indicating that selling pressure may be overextended. A rebound from this level could signal a reversal. Although TSM is struggling near its short-term support, bullish momentum is gradually increasing. The 38.2% Fibonacci Retracement level is currently acting as resistance. A breakout above it would signal renewed bullish sentiment and could pave the way for further gains.

If TSM can hold its support and break through resistance, traders may see a push toward higher retracement levels. Conversely, a failure to hold above support could lead to deeper losses, particularly if broader market sentiment remains negative.