TSMC's significant capital expenditure forecast raised concerns about its gross margin, contributing to a broad decline in chip stocks and the Taiwan market. The Taiwan weighted index plummeted 2953.71 points, a 6.47% decline, marking its largest single-day closing point drop in history. TSMC's stock price plunged 180 yuan, closing below 2330 yuan.
TSMC's aggressive capex for future compute capacity is now directly impacting its near-term profitability outlook, creating market volatility.