TSMC reportedly delays Arizona equipment deliveries, shares of suppliers drop

American depositary receipts of third-party chip fab Taiwan Semiconductor Manufacturing Co.
TSM,
-2.24%
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,
-2.58%
down 2.4%, as shares of chip-equipment makers Applied Materials Inc.
AMAT,
-4.16%
and KLA Corp.
KLAC,
-4.38%
both fell 4%, and both Lam Research Corp.
LRCX,
-4.34%
and ASML NV
ASML,
-3.70%
declined 3.5%. Meanwhile the S&P 500 index
SPX,
-0.97%
was down 1%.