TSMC Shares Plunge Amid DeepSeek AI Disruption
Source: reuters.com Taiwan Semiconductor’s Stock Takes a Hit Taiwan Semiconductor Manufacturing Company (TSMC) saw its shares tumble sharply on Monday as local trading resumed following a week-long break. The decline comes as the company’s stock catches up with significant losses observed in global semiconductor stocks, driven by concerns over China’s latest artificial intelligence (AI) advancements. TSMC’s stock (TW:2330) fell by as much as 6.6% in Taipei trading, leading to a broader 4.4% drop in the TWII index. Hon Hai Precision Industry (TW:2317), another key supplier for NVIDIA Corporation (NASDAQ: NVDA), also suffered a 10% decline, adding to the downward pressure on the market. DeepSeek R1 AI Model Raises Industry Concerns The primary trigger for this market reaction was the recent unveiling of China’s DeepSeek R1 AI model. The AI model demonstrated performance levels comparable to offerings from industry giants like OpenAI and Meta (NASDAQ: META) despite operating on...