How Taiwan Semiconductor ETFs Are Falling Despite Rising Earnings

Taiwan Semiconductor (TSMC) just reported record May revenue, yet Taiwan ETFs like EWT are down nearly 7% in the past five days. Lucas and Luna dig into the disconnect—why a company with dominant market share in advanced chips, strong pricing power, and a strategic position in the AI supply chain is seeing its stock and ETF slide. They trace the pressure to three forces: US-China tariff escalation that threatens Taiwan's role in global supply chains, rising geopolitical risk as the Iran conflict draws in more players, and a broader rotation out of emerging markets into safer assets. The hosts also connect it to the broader narrative of the 'Taiwan tax'—the discount investors demand for holding assets exposed to potential conflict. Specific data points include the EWT's 6.7% weekly drop versus the S&P 500's modest 1.9% decline, and the trade-weighted dollar index easing slightly to 118.9. This episode offers a concrete case study in how macro risk can overwhelm micro fundamentals. #TaiwanSemiconductor #TSMC #EWT #TaiwanETF #Semiconductor #AI #SupplyChain #GeopoliticalRisk #Tariffs #USChinaTrade #EmergingMarkets #DollarIndex #MacroRisk #MicroFundamentals #FexingoBusiness #BusinessPodcast #Economics #GlobalEconomy Keep every episode free: buymeacoffee.com/fexingo