1. Taiwan Semiconductor Manufacturing Co. faces possible regulatory scrutiny over Huawei chip production. 2. Concerns about TSM's export of chips to Huawei could impact its operational future.
The scrutiny on TSM due to its relations with Huawei may lead to restrictions, similar to past sanctions affecting Chinese technology companies. Historical examples include Qualcomm and ZTE, which faced = substantial operational impacts due to U.S. export restrictions.
The growing concerns regarding TSM's relationship with Huawei likely influence investor sentiment and stock performance due to the potential for regulatory action.
Immediate regulatory scrutiny could affect TSM's chip production capacity and supply agreements, impacting short-term revenues. The Taiwan market has shown sensitivity to geopolitical tensions impacting chip exports.