What's Going On With Taiwan Semiconductor Sock On Thursday?

Global semiconductor manufacturers, including Taiwan Semiconductor Manufacturing Co TSM, Infineon Technologies, Samsung Electronics, and SK Hynix, are monitoring supplies of high-purity quartz after Hurricane Helene halted production at two leading North Carolina mines, Sibelco and Quartz Corp SCMP reports.

Quartz is a critical component used in the semiconductor industry. Thus far, the companies have maintained that Hurricane Helene will have no impact on the material.

According to SCMP, two North Carolina mines that produce most of the world's supply have halted production.

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Meanwhile, Taiwan Semi is considering discounts for its 7-nanometer and 14-nanometer technology processes and above to boost capacity utilization on mature processes and prevent margin loss from lower average selling prices (ASP) due to competition from other foundries, the Commercial Times reports.

Taiwan Semiconductor's 7-nm processors accounted for 17% of revenue in the second quarter.

The contract chipmaker's advanced manufacturing processes are fully packed, driven by the demand for artificial intelligence and smartphones and a recovery in the utilization rate of mature process wafer foundries as the semiconductor industry hits the traditional peak season.

The semiconductor industry, which noted a huge upside from the shift to artificial intelligence technology, remains susceptible to geopolitical tensions and Wall Street questioning the sustainability of the capital-intensive technology.

Semiconductor ETFs VanEck Semiconductor ETF SMH and iShares Semiconductor ETF SOXX have lost close to 5% in the last five days due to the industry selloff led by Nvidia Corp NVDA, which analysts tout as a key AI beneficiary.

Price Action: TSM stock is down 0.32% at $175.24 premarket at last check Thursday.

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