Taiwan Semiconductor Manufacturing Company (TSM) has halted chip shipments to China-based Sophgo after TSMC found one of its chips featured in Huawei's AI processor, according to Reuters. TSMC shares move lower in Monday's session as US and Taiwan officials investigate this matter.

Before this incident, TSMC previously denied reports that it was under investigation by US officials for supposed business dealings with Huawei, which could violate trade restrictions.

Market Domination co-hosts Josh Lipton and Josh Schafer examine this report and how it may affect TSMC's position in the AI chip race.

To watch more expert insights and analysis on the latest market action, check out more Market Domination here.

This post was written by Luke Carberry Mogan.