Taiwan Semiconductor Manufacturing Co. shares are trading lower after the company halted shipments to China-based chip designer Sophgo after discovering its chip was used in Huawei's Ascend 910B AI processor.
Portfolio Pulse from Benzinga Newsdesk
Taiwan Semiconductor Manufacturing Co. (TSMC) shares are declining due to the halt in shipments to Sophgo, a China-based chip designer, after discovering its chip was used in Huawei's Ascend 910B AI processor.
October 28, 2024 | 12:50 pm
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TSMC's shares are trading lower after halting shipments to Sophgo due to the use of its chips in Huawei's Ascend 910B AI processor.
The halt in shipments to Sophgo indicates potential regulatory and compliance issues, especially concerning Huawei, which is under scrutiny. This action could affect TSMC's revenue from Chinese clients, leading to a short-term negative impact on its stock price.
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