Shares of Taiwan Semiconductor Manufacturing Co. (TSM) experienced a significant intraday decline of 5.21% on [movement_time] amid growing concerns over the demand for artificial intelligence (AI) chips.
The sell-off in TSM stock appears to be driven by reports of protests by cross-border sellers on the e-commerce platform Temu. According to sources, hundreds of sellers have gathered outside Temu's office in Guangzhou, protesting the platform's alleged unreasonable fines and aggressive tactics. This development has raised questions about the sustainability of the current pricing strategies employed by bargain apps like Temu and Pinduoduo, which could potentially impact the demand for AI chips manufactured by TSM.
Analysts have also pointed out that some of China's biggest online retailers, including Douyin and Alibaba's Taobao, are shifting their focus from prioritizing ultra-low prices to increasing total online sales. This move suggests a growing realization that competing solely on price may not be a viable long-term strategy, especially against platforms like Pinduoduo that have built a reputation for offering the best deals.