Global chip inventories plummet ASML, Nvidia and British Semiconductor Exports fell amid reports of tighter U.S. export restrictions and comments by the former U.S. president that heightened geopolitical tensions Donald Trump.
ASML’s Dutch-listed shares fell 6.5% in early trade, while Tokyo Electronics Japanese stocks closed down nearly 7.5%.
after the action occurs Burundi Reports on Wednesday said the Biden administration is considering a broad crackdown on companies exporting critical chipmaking equipment to China.
Washington’s Foreign Direct Products Rule (FDPR) allows the United States to impose controls on foreign-made products even if they use a minimal amount of American technology. This could impact non-U.S. companies.
CNBC has reached out to the U.S. State Department, Bureau of Industry and Security, and Office of the U.S. Trade Representative for comment on the report.
ASML shares fall Announced earnings beat market expectations in season two. However, 49% of the company’s sales during the period occurred in China, underscoring how much risk the company faces if restrictions are tighter. ASML makes the machines needed to make the world’s most advanced wafers.
Former President Trump’s comments further added to negative sentiment on semiconductor stocks.
Trump says Taiwan should pay U.S. defense costswhen being interviewed Bloomberg Businessweek Published Tuesday. The former president also claimed that Taiwan accounts for “approximately 100%” of the U.S. semiconductor business.
U.S. President Joe Biden and Chinese President Xi Jinping are expected to meet on the sidelines of the Asia-Pacific Economic Cooperation summit in San Francisco in November.
Saul Loeb | AFP | Getty Images
The comments raised doubts about the United States’ commitment to defending Taiwan under Trump’s presidency and in the event of an attack by China.
TSMC’s Taiwan-listed shares closed down 2.4% on Wednesday.
Geopolitical tensions also weighed on U.S. chip stocks. VanEck Semiconductor ETF In pre-market trading, Nvidia shares fell about 2.7%, while Nvidia fell about 3% before the opening. arm and Applied Materials is among other U.S.-listed laggards in U.S. pre-IPO transactions
