Global semiconductor stocks plummeted, with ASML, Nvidia, and TSMC reporting losses in the wake of allegations of increased export prohibitions from the US and an escalation of geopolitical tensions stoked by remarks made by the US President Donald Trump.
Tokyo Electron’s Japanese stock closed about 7.5% lower, while ASML’s shares, which are listed in the Netherlands, were down 6.5% in morning trading.
The actions were prompted by a Bloomberg story published on Wednesday, which stated that the Biden administration is thinking of launching a broad offensive to punish businesses that ship vital chipmaking 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. CNBC has requested comments on the study from the Office of the U.S. Trade Representative, the Bureau of Industry and Security, and the U.S. State Department.
Source (CNBC)
