The U.S. move follows a Bloomberg report on Wednesday that the Biden administration is considering restricting companies that export critical chip-making equipment to China.
Huang Yuliang | Moment | Getty Images
Asian chip stocks plunged on Thursday as Wall Street’s technology stocks sold off amid reports that the United States may consider tightening export restrictions.
shares British Semiconductor The world’s largest chip supplier fell 4.3% in Asian trading before paring losses. The company reported Thursday Second-quarter revenue and profit expectations Better than expected.
TSMC’s suppliers have also been hit, including Japan Machinery Co. Tokyo Electronics plunged nearly 9%, while Screen Holdings A drop of more than 8%.
Other wafer-related stocks, such as photolithography materials providers Tokyo Chemical Industry and industrial water co. Organo They also dropped by 4.53% and 3.13% respectively.
A Burundi Reports on Wednesday said the Biden administration may be considering restrictions on companies exporting critical chipmaking equipment to China, further exacerbating tensions between the two superpowers.
“Chip companies have always been the darlings of the market. Almost everything we touch has been digitized. Any kind of tariffs and trade restrictions will affect these chip companies. We are seeing this all over the world,” Ayako Yoshioka said, senior portfolio manager at Wealth Enhancement Group.
South Korean chip stocks have not been spared. Samsung Electronics fell nearly 2%, while SK hynix plunged nearly 5%, and SK Square plunged nearly 10%.
But Yoshioka said there are still buying opportunities for long-term investors.
“The market can move a lot just based on sentiment and headlines, especially in the short term. In the long term, you really have to focus on the promise of (artificial intelligence) and what it can really do for so many businesses and consumers.” Something,” she told CNBC.Asian road sign“.
Yoshioka explained: “Policy hurdles will certainly be a catalyst for negative relief in the market, and earnings may also be another catalyst as expectations are high heading into earnings season… This may have some impact on some stocks in the short term. Negative stress.
The Foreign Direct Products Rule (FDPR) allows the U.S. to exercise control over foreign-made products even if they use little U.S. technology, which could hinder non-U.S. companies.
The spillover effects on Asian tech stocks came amid sharp declines on Wall Street. ASML and Nvidialosses of 12% and 7% respectively.
ASML HoldingsThe company that makes the machines that make the world’s most advanced chips closed down more than 12% despite a better-than-expected report. Second quarter financial report.
arm, AMD, Marvel, Qualcomm and Broadcom As of the trading day, the decline was more than 7%.
In addition, U.S. Republican presidential candidate Trump said Bloomberg Businessweek The one on Wednesday Taiwan should pay defense expenses to the United States. He also accused Taiwan of accounting for “approximately 100%” of the U.S. chip business.
—CNBC’s Arjun Kharpal contributed to this report.
