## Semiconductor Stocks Slide Amid Market Weakness and China's Chip Phase-Out Plans
Shares of major chipmakers, including Taiwan Semiconductor Manufacturing Company (TSMC), Arm Holdings Plc (ARM), and ASML Holding N.V. (ASML), are experiencing a downward trend on Thursday, reflecting broader market weakness and concerns surrounding China's plans to phase out foreign chips.
The overall market has been experiencing a downturn, impacting the performance of semiconductor companies. Additionally, reports suggesting that China has instructed telecom carriers to gradually eliminate foreign chips have further contributed to the decline in chipmaker stocks.
ASML, a leading manufacturer of chipmaking equipment, released its first-quarter financial results on Wednesday, falling short of analysts' expectations for both earnings and revenue. This disappointing performance led to a significant drop in ASML's share price, exceeding 10%.
Arm Holdings, a major designer of chip architectures, saw its stock price decline in sympathy with ASML's performance. Additionally, the stock has experienced a substantial drop of over 20% in the past five days.
TSMC, the world's largest contract chip manufacturer, reported better-than-expected first-quarter results on Thursday. However, the company lowered its chip market outlook due to anticipated persistent consumer weakness, overshadowing the positive Q1 performance.
TSMC CEO C.C. Wei acknowledged the ongoing macroeconomic and geopolitical uncertainties, highlighting their potential impact on consumer sentiment and end-market demand, as reported by Bloomberg.
As of Thursday's publication time, Benzinga Pro data indicates that Taiwan Semiconductor Manufacturing shares are down 4.73% at $132.45, Arm Holdings shares are down 2.69% at $104.67, and ASML shares are down 2% at $889.45.