By Kosaku Narioka


Taiwan Semiconductor Manufacturing Co. shares fell sharply Tuesday after new U.S. restrictions on chip exports raised concerns about the prospects of the company's business opportunities in China.

TSMC's shares were recently down 6.7% at 408.50 New Taiwan dollars after falling as much as 7.1% earlier.

The U.S. imposed new export restrictions on advanced semiconductors and chip-manufacturing equipment Friday in an effort to prevent American technology from advancing China's military power.

The rules will allow the U.S. to block foreign-made chips that are manufactured with U.S. technology, U.S. officials said.

The stock market in Taiwan was closed Monday for a national holiday.

TSMC's revenue from customers in China made up 13% of the total in the second quarter.

The latest U.S. restrictions won't only be negative for the Chinese semiconductor industry, but will also indirectly affect global semiconductor makers' business opportunities, Citi analysts Laura Chen and Jack Chen said in a research note.

While most of TSMC's advanced chips are for U.S. clients, its clients' business in China could also be negatively affected in the longer run, Citi analysts said.

Meanwhile, TSMC said Friday that its revenue in September fell 4.5% from the previous month to 208.25 billion New Taiwan dollars (US$6.55 billion), though it rose 36% from a year earlier.

Taiwan's stock benchmark Taiex was recently 3.6% lower amid concerns about policy tightening by major central banks and the global economic outlook.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

10-10-22 2341ET