Movement Alert|Taiwan Semiconductor Manufacturing Overnight Decline 3.05%, Kumamoto Earthquake Sparks Capacity Disruption Fears Amid Broad Chip Selloff

Market Focus07-29 12:03

On July 29, Taiwan Semiconductor Manufacturing declined 3.05% overnight, trading at $380.5/share, with turnover of $33.19 million.

On the news front, a 7.1-magnitude earthquake struck Kumamoto, Japan on July 28, putting Taiwan Semiconductor Manufacturing's JASM wafer fabrication facility to its first major seismic test. The company confirmed it had evacuated all employees after the quake intensity reached evacuation thresholds, with partial construction work suspended. Taiwan Semiconductor Manufacturing subsequently confirmed building structural integrity and employee safety, stating production operations were gradually resuming. Japan's Chief Cabinet Secretary also noted no reports of damage to the Kumamoto fab.

Despite limited actual physical damage, market concerns over potential capacity disruption persisted. The broader semiconductor sector continued to weaken, with the Philadelphia Semiconductor Index having retreated over 20% from its peak into a technical bear market. Sector peers declined in tandem, with Micron Technology down 5.54%, Intel down 3.96%, Advanced Micro Devices down 2.68%, Broadcom down 1.42%, and NVIDIA down 1.1%.

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