American depositary receipts of third-party chip fab Taiwan Semiconductor Manufacturing Co. TSM fell Friday and weighed upon the chip sector following a report it was reaching out to chip-equipment vendors to delay deliveries. Early Friday, Reuters reported that TSMC was delaying deliveries of equipment to the facility it is building in Arizona, cautious of the demand outlook, citing two sources close to the matter. U.S. shares of TSMC fell 2% in Friday trading with the PHLX Semiconductor Index SOX down 2.4%, as shares of chip-equipment makers Applied Materials Inc. AMAT and KLA Corp. KLAC both fell 4%, and both Lam Research Corp. LRCX and ASML NV ASML declined 3.5%. Meanwhile the S&P 500 index SPX was down 1%.

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