Key Highlights

● TSMC slid on October 22 as global chip stocks retreated.

● No company-specific news was reported.

● China's CSI 300 entered a bear market, closing at 4,036.30.

● The Philadelphia Semiconductor Index closed just above its 200-day moving average.

Taiwan Semiconductor Manufacturing (NYSE:TSM) slid on Thursday, October 22, 2026, falling among decliners on the NYSE Composite as global chip stocks retreated. The world's largest contract chipmaker moved with the broader selloff in semiconductors, according to market data. No company-specific news was reported.

TSMC's American depositary receipts trade on the New York Stock Exchange, and the company is not a member of the S&P 500.

A global chip rout

The selling began in Asia and carried through Europe and the US. South Korea's Kospi, Hong Kong's Hang Seng and Japan's Nikkei all fell sharply, and China's CSI 300 entered a bear market, closing at 4,036.30. European stocks had their biggest drop in three weeks, according to market data.

In New York, the Philadelphia Semiconductor Index posted its biggest one-day drop since June 23. It closed just above its 200-day moving average, and is now well below its June 22 record.

Lam Research (NASDAQ:LRCX) led the declines after its December-quarter guidance cited supply constraints. Applied Materials (NASDAQ:AMAT), KLA (NASDAQ:KLAC) and ASML (NASDAQ:ASML) also fell sharply, while AMD (NASDAQ:AMD), Intel (NASDAQ:INTC), Marvell (NASDAQ:MRVL) and SanDisk (NASDAQ:SNDK) each tumbled, according to market data.

Nvidia (NASDAQ:NVDA) closed at $212.21 and was one of the biggest drags on the S&P 500, according to market reports.

Why TSMC was caught up

TSMC manufactures chips for many of the world's biggest technology companies, including Nvidia, AMD and Apple. Its fortunes are closely tied to demand for advanced processors used in AI data centers.

That made it vulnerable to Thursday's worries about AI spending. Meta Platforms (NASDAQ:META) reported heavy capital expenditure plans of $135 billion to $145 billion for 2026 and its first cash outflow in more than a decade, according to market data. Investors began to ask how long such spending can continue and who will pay for it.

Remarks from Nvidia's chief executive added to those concerns. "The demand of the capital is much greater than the availability of the capital," he said.

Lam Research's management also flagged constraints in clean-room space and components that, they said, will limit chipmakers' and equipment companies' ability to fully meet demand into 2027.

The broader market

The Nasdaq Composite fell 694.00 points to 26,008.86, its steepest drop since June 5 and the end of a seven-session winning streak. The S&P 500 lost 93.74 points to 7,663.43, its worst day since July.

But the selling was concentrated in technology. About two of every three S&P 500 stocks rose, according to market reports, and the Dow Jones Industrial Average edged up 11.89 points to 52,867.98. Consumer staples and health care hit records.

Volume was heavy across US exchanges, at 18.79 billion shares, compared with a 20-session average of 17.19 billion, according to market data. The Cboe Volatility Index rose 2.35 points to 19.03, a sign of rising anxiety among investors.

TSMC Watches Big Tech Spending Plans

Big Tech earnings will be the next test for chip stocks. Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) report on Wednesday, October 28, and Amazon (NASDAQ:AMZN) and Intel report on October 29. Any change in their AI spending plans could ripple through to TSMC's order book.

Investors will also watch Asian markets for signs of stabilization after Thursday's rout, and the Federal Reserve's decision on October 28.