Following concerns of harsher export restrictions from the United States and an increase in geopolitical tensions stoked by remarks made by former US President Donald Trump, global semiconductor stocks fell precipitously, with ASML, Nvidia, and TSMC reporting drops.
In morning trading, ASML’s shares listed in the Netherlands saw a 6.5% decrease, while Tokyo Electron’s shares in Japan ended the day almost 7.5% off.
The actions followed a report on Wednesday by Bloomberg that the Biden administration is contemplating a broad regulation aimed at curbing businesses that transfer vital chip manufacturing machinery to China.
Foreign-made goods can nevertheless be subject to American rules even if they incorporate very little American technology, thanks to Washington’s Foreign Direct Product Rule, or FDPR. Businesses outside of the US may be impacted.
Source (CNBC)
