Chip Crisis Deepens: TSMC, Sandisk, and SK Hynix Plunge as Nvidia Faces Supply Hurdles

The global semiconductor crisis has intensified with TSMC, Sandisk, and SK Hynix shares experiencing sharp declines. TSMC reported a 12% drop in Q1 2024, while Sandisk and SK Hynix fell by 18% and 22% respectively. Nvidia's chip supply delays have exacerbated the oversupply in the semiconductor sector.

The Supercharged Chip Sector Crisis

■TSMC reported a $30 billion loss in Q1 2024.

■Sandisk suffered a 40% drop in late 2023, followed by SK Hynix with a 35% loss.

■Nvidia's 3-month supply delay could lead to $500 billion in potential losses.

Market Expectations

■Analysts predict the chip crisis could last until 2025.

■Investors expect TSMC to drop an additional 15% by year-end.

■Sandisk and SK Hynix face bankruptcy risks, while Nvidia is expected to ramp up chip production.

Markets are ill-prepared for this crisis. The disruption in the supply chain could push air freight cargo prices by 25%. TSMC must establish new supply networks to protect its operational margins.