In this illustration taken on February 17, 2023, a Chinese flag is displayed next to a “Made in China” logo on a printed circuit board with semiconductor wafers.
Florence | Reuters
Major Asian chip stocks outside China rose on Tuesday, shrugging off a new round of U.S. semiconductor export restrictions on Beijing that are aimed at crippling the country’s ability to produce some high-end chips.
British Semiconductor The world’s largest contract chip supplier – shares rose 2.42%.
Several Japanese chip-related stocks also rose. Tokyo Electronics up 4.7%, laser technology up 6.7%, Advant test up 3.9% Renesas Electronics up 2.2%.
Japan Technology Group SoftbankShares of companies holding shares in British chip design company Arm rose 3.6%.
The Biden administration’s latest chip restrictions will also target sales of high-bandwidth memory chips, which could affect South Korea’s SK Hynix and Samsung, two of the world’s largest memory chip makers.
However, shares of Samsung Electronics and SK Hynix rose 0.9% and 1.8% respectively.
Derrick Irwin, portfolio manager at Allspring Global Investments, told CNBC’s “Street Signs Asia” on Tuesday that high-bandwidth memory controls will affect Korean players to a certain extent.
“While we believe these players have fairly small impact and sales of high-bandwidth memory chips in China, they may be able to shift this demand to the U.S. and other markets,” he said.
Ministry of Commerce declare China is restricting exports of semiconductors to 140 new companies on Monday, the latest step to limit its access to cutting-edge chip technology that could be used to boost its military capabilities.
Northern Huachuang Technology Group, Piotek and ACM Research are among the largest Chinese companies placed on export control lists.
Shares of China’s Naura Technology and ACM Research fell 3% and 1% respectively, while Piotech gained 1%. Semiconductor Manufacturing International Corporation, China’s largest chipmaker, fell 1.5% in Hong Kong.
U.S. Commerce Secretary Gina Raimondo said on Monday that the new export controls were “the result of the Biden-Harris administration’s targeted efforts to weaken China’s ability to localize the production of advanced technologies that pose a threat to our national security.”
In addition to the additional entities, the latest U.S. restrictions include new controls on 24 types of manufacturing equipment and three categories of software tools used to develop semiconductors.
Last month, it was reported that chips produced by TSMC were banned from import into the United States, and the effectiveness of U.S. chip restrictions was questioned. Found in Huawei products.
The new export restrictions include new “red flag guidance” to address compliance issues, as well as several “key regulatory changes” designed to improve the effectiveness of existing controls.
