The U.S. move follows a Bloomberg report on Wednesday that the Biden administration is considering restrictions on companies exporting critical chipmaking equipment to China.
Huang Yuliang | Moment | Getty Images
Asian chip stocks plunged on Thursday as Wall Street’s technology stocks sold off amid reports that the United States may consider tightening export restrictions.
shares British Semiconductor The world’s largest chip supplier fell 4.3% in Asian trading before paring losses. The company reported better-than-expected second-quarter revenue and profit Thursday.
TSMC’s suppliers have also been hit, including Japan Machinery Co. Tokyo Electronics plunged nearly 9%, while Screen Holdings A drop of more than 8%.
Other wafer-related stocks, such as photolithography materials providers Tokyo Chemical Industry and industrial water co. Organo They also dropped by 4.53% and 3.13% respectively.
A Bloomberg Reports on Wednesday said the Biden administration may be considering restrictions on companies exporting critical chipmaking equipment to China, further exacerbating tensions between the two superpowers.
“Chip companies have always been the darlings of the market. Almost everything we touch has been digitized. Any kind of tariffs and trade restrictions will affect these chip companies. We are seeing this all over the world,” Ayako Yoshioka said, senior portfolio manager at Wealth Enhancement Group.
South Korean chip stocks have not been spared. Samsung Electronics fell nearly 2%, while SK hynix plunged nearly 5%, and SK Square plunged nearly 10%.
But Yoshioka said there are still buying opportunities for long-term investors.
“The market can move a lot just based on sentiment and headlines, especially in the short term. In the long term, you really have to focus on the promise of (artificial intelligence) and what it can really do for so many businesses and consumers.” Something,” she told CNBC’s “Signpost Asia.”
Yoshioka explained: “Policy hurdles will certainly be a catalyst for negative relief in the market, and earnings may also be another catalyst as expectations are high heading into earnings season… This may have some impact on some stocks in the short term. Negative stress.
The Foreign Direct Products Rule (FDPR) allows the U.S. to exercise control over foreign-made products even if they use little U.S. technology, which could hinder non-U.S. companies.
ASML and Nvidia fell 12% and 7% respectively, and Wall Street stocks fell sharply, which had a spillover effect on Asian technology stocks.
ASML HoldingsThe company, which makes machines that make the world’s most advanced chips, closed down more than 12% despite reporting better-than-expected second-quarter earnings.
Arm, AMD, Marvell, Qualcomm and Broadcom ended the trading day down more than 7%.
In addition, U.S. Republican presidential candidate Trump said Bloomberg Businessweek On Wednesday, Taiwan was due to pay defense costs to the United States. He also accused Taiwan of accounting for “approximately 100%” of the U.S. chip business.
—CNBC’s Arjun Kharpal contributed to this report.
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