ewsba.se
Written by Stefon Walters for The Motley Fool->
Taiwan Semiconductor Manufacturing Company uses numerous specialty gases and chemicals in its daily operations.
The Iran war has increased the prices of those commodities.
When the Iran war began on Feb. 28, one of the first things Americans noticed was how rapidly gas became much more expensive. Higher fuel prices are undoubtedly hitting people's household budgets, but the impact isn't just limited to people; plenty of companies are feeling it in their wallets as well.
Taiwan Semiconductor Manufacturing Company (NYSE: TSM) probably isn't the first name you'd think of when listing companies that would be affected by a war in the Middle East, but its operations require tons of electricity, as well as other elements that are feeling the impact.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
TSMC manufactures many of the semiconductors used in most technology products and data centers. It isn't your regular factory operation, either. Fabricating chips takes specialized facilities and a host of specific materials, including numerous special gases (like helium and hydrogen) and chemicals.
TSMC uses these gases and chemicals for tasks such as cooling its fabs, maintaining the precise operating conditions, and vital cleaning processes. Unfortunately, due to the war, the supply chains for many of those commodities have become disrupted, and what is still available is more expensive. On its latestearnings call TSMC's chief financial officer noted that this could affect its profitability, but said it was too early to estimate by how much.
The company sources from multiple suppliers across different regions, so it has enough materials for its near-term operations, but the issues are worth keeping an eye on, as it may need to replenish its supplies again while prices remain inflated. Its 50.5% net profit margin in the first quarter was 7.4 percentage points higher than Q1 2025.
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $473,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,204,650!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 6, 2026.
Stefon Walters has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
This data feed is not available at this time.