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Investing.com -- Texas Instruments (NASDAQ: NASDAQ:TXN) stock tumbled 6.5% today as the company faces new challenges due to heightened geopolitical tensions between the U.S. and China. The decline followed an emergency notice from the China Semiconductor Industry Association regarding the origin of chip imports.
The notice, which has significant implications for semiconductor companies, states that the origin of chip imports for customs declarations will be determined by where the chips are taped out, adhering to customs regulation. This development is particularly impactful for firms like Texas Instruments and Intel (NASDAQ:INTC), as it could affect their operations and sales in the crucial Chinese market.
The China Semiconductor Industry Association, which is linked to the state and includes members such as Nvidia (NASDAQ:NVDA), SK Hynix, and Oppo, plays a pivotal role in the semiconductor industry within China. The emergency notice has raised concerns among investors about potential disruptions to the supply chain and sales for semiconductor companies operating in China.
The stock movement reflects the market's immediate reaction to the announcement, which could have far-reaching consequences for Texas Instruments' business dealings in China. The company's shares are responding to the uncertainty brought about by the new regulatory environment, which may pose challenges to the import and export processes for semiconductor companies.
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