BUZZ-US chip tool makers fall on report TSMC asks vendors to delay delivery

Reuters · 09/15/2023 08:45
BUZZ-US chip tool makers fall on report TSMC asks vendors to delay delivery

** Semiconductor equipment makers Applied Materials AMAT.O, KLA KLAC.O and Lam Research LRCX.O fall 1.4% to 2.5% premarket

** Shares decline following a Reuters report Taiwan's TSMC 2330.TW - the world's largest contract chipmaker - has told its major suppliers to delay the delivery of high-end chipmaking equipment

** Co's instruction reflects its growing caution about the demand outlook - the report

** Those hit by the delay include ASML, the report says, sparking a 2.4% fall in U.S. shares ASML.O of the Dutch firm whose lithography tools are essential for high-end chipmaking

** Chip firms are grappling with a slump in end markets including smartphone and PC

** TSMC has also been forced to postpone production at its Arizona plant by a year to 2025 due to hurdles in recruiting workers and pushback from unions on efforts to bring in workers from Taiwan

** As of last close, shares of AMAT, KLA and Lam Research have risen between 27.3% and 56.2% this year, widely outperforming the benchmark S&P 500 index .SPX




(Reporting by Aditya Soni in Bengaluru)

((Aditya.Soni@thomsonreuters.com))