TSMC Is Down, the Iran War Is Rattling Chip Stocks, and That's Exactly Why Long-Term Investors Should Pay Attention
2026-03-27 12:50:00 ET
Shares of Taiwan Semiconductor Manufacturing (NYSE: TSM) have declined by over 7% in the past month, as geopolitical tensions tied to the Iran conflict raise concerns about global supply chains. Hence, while the company's demand drivers remain intact, its risk perception has clearly shifted.
Image source: Getty Images.
Taiwan relies heavily on liquified natural gas (LNG) imports, much of which pass through the Strait of Hormuz. Any disruption in this corridor could increase energy costs and constrain TSMC's chip production. According to geopolitical commentator Shanaka Anslem Perera, Taiwan imports 97% of its energy requirements and holds just 11 days of natural gas reserves (as of March 23, 2026). Rising helium prices can also prove to be a possible bottleneck in advanced chip manufacturing.
NASDAQ: TSM
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