TSMC is trading 3.8% down at $385.64 following reports that a state-backed Chinese firm has achieved mass production of key domestic chipmaking tools, heightening fears of future competition.
- The breakthrough in Chinese domestic equipment production is seen as a potential challenge to the market share of leading global foundries like TSMC.
- The decline is exacerbated by a broader sell-off in semiconductor stocks amid concerns over AI-related capital expenditure and China's rapid technological advancements.