Taiwan Semiconductor $TSM China Ban and Dark Pool Selling

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Taiwan Semiconductor $TSM stock fell -6% on October 11, 2022, in the wake of the China chip ban by the U.S. Dark pool trades suggest selling of $TSM stock by institutional investors.

US chip ban to hurt TSMC

The US government’s decision to impose new restrictions on the sale of semiconductors and chip-making equipment to Chinese companies could hurt Taiwan Semiconductor.

The measures announced by the US on Friday include a ban on advanced computing chips, including those used in artificial intelligence and high-performance computing, from being sold to China without a license. They include production equipment in the ban. China’s AI chip makers, including Biren, may face some restrictions on outsourcing production to Taiwan Semiconductor.

That likely means Taiwan could not sell semiconductor manufacturing equipment and advanced chips to Chinese companies, while the government would review sales to foreign companies operating in China individually.

It strikes directly at China’s multibillion-dollar effort to build a world-class semiconductor industry and replace American technology.

TSMC sees major fabless clients scale back orders for 2023, DigiTimes reports

On September 27, 2022, DigiTimes’ Monica Chen and Jessie Shen report that Taiwan Semiconductor has seen its major fabless customers cut back wafer starts for 2023, which may prompt the foundry to revise its sales outlook at an investor conference in January 2023. Source: https://www.digitimes.com/news/a20220926PD209/ic-manufacturing-tsmc.html

Dark Pool Trades in Taiwan Semiconductor $TSM Stock

We detected dark pool trades in Taiwan Semiconductor $TSM stock between October 6 and October 11, 2022. The dark pool trades look like large institutional investors reducing long positions in the wake of the Biden Administration’s ban on U.S. chips sold to China.

Taiwan Semiconductor stock chart on October 11, 2022, with dark pool trades that look like sell orders.

Make sure to review this lesson on dark pool trading so that you understand the chart above.

U.S. is putting the choke on China’s computing capabilities

Taiwan Semiconductor $TSM Stock Technical Analysis

Taiwan Semiconductor $TSM stock is in a technical strong downtrend. The MACD confirmed a sell signal on October 11, 2022, and the money flow shows panic selling.

Taiwan Semiconductor stock chart in strong downtrend on October 11, 2022, with a MACD sell signal and negative money flow.
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