Global semiconductor stocks plunged, with ASML, Nvidia, and TSMC reporting losses in the wake of allegations of further export restrictions from the US and an escalation of geopolitical tensions stoked by remarks made by the US President Donald Trump.
While Tokyo Electron’s Japanese stock closed over 7.5% lower, ASML’s shares, which are traded in the Netherlands, saw an 11% decline.
More than 7% of the stocks of Arm, AMD, Marvell, Qualcomm, and Broadcom were closed.
The actions were prompted by a Bloomberg story from Wednesday indicating that the Biden administration is contemplating enacting a broad regulation aimed at curbing businesses that transfer vital chip manufacturing machinery to China.
Washington’s Foreign Direct Product Rule, or FDPR, permits the United States to impose restrictions on goods created abroad, even if such goods only make minimal use of American technology. Non-US companies may be impacted by this.
Source (CNBC)
