Taiwan Semiconductor Manufacturing (TSM) Staring at Chips Production Disruption Amid Iran War

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of Harvard University’s top AI stock picks. On March 14, Morgan Stanley warned that the closure of the Strait of Hormuz poses significant risks to the global semiconductor supply chain. Consequently, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) could feel the brunt, given that it manufactures 90% of the advanced chips needed to power the AI revolution.

The fact that Taiwan’s power grid relies heavily on liquefied natural gas imports underscores the potential risks to Taiwan Semiconductor Manufacturing’s ability to continue producing advanced chips. The company consumes between 9% to 10% of the country’s total power, which is under pressure amid LNG supply woes. Any power volatility threatens to trigger knock-on effects on the global supply of AU and smartphone processors.

On the other hand, the company delivered impressive financial developments for February. Net revenue in the month was up 22.2% to NT$317.66 billion. Nevertheless, February revenue was down 20.8% from January. The company’s revenue for the first two months of the year was up 29.9% compared to the same period in 2025.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s leading semiconductor foundry, fabricating the vast majority of advanced AI chips, including GPUs and accelerators for Nvidia and AMD, as well as custom silicon for Apple. It dominates the production of high-performance 3nm and 5nm nodes and controls crucial CoWoS advanced packaging, enabling the scaling of complex AI systems.

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