On June 4, 2024, a worker was producing wafers at a semiconductor manufacturing company in Binzhou, China.
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Asian chip stocks fell on Wednesday after Dutch semiconductor equipment maker ASML issued a disappointing sales forecast, sending global stocks lower in the sector.
Japanese Semiconductor Manufacturing Company Stocks Tokyo Electronics The biggest drop was nearly 10%. Renesas Electronics The decline exceeds 3%, and Advant testA test equipment supplier fell 0.8%.
British Semiconductor and Hon Hai Precision Industry The company, known internationally as Foxconn, fell 3.3% and 1.6% respectively.
South Korean chip manufacturing giant SK Hynix, which produces high-bandwidth memory chips for Nvidia for artificial intelligence applications, saw its stock price fall 1.6%. The share price of Samsung Electronics, the world’s largest dynamic random access memory chip manufacturer, fell 1.9%.
Losses in the region’s semiconductor industry also weighed on major stock indexes. Japanese Nikkei 225 Index A drop of more than 2%, Korea Kospi down 0.6%, Taiwan Weighted Index down 0.7%.
Veldhoven, Netherlands-based ASML said in a report on Tuesday that it expects net sales to be between 30 billion euros and 35 billion euros ($32.7 billion to $38.1 billion) in 2025, which is in the lower half of the expected range. has been provided before.
The company said net bookings for the September quarter were 2.6 billion euros ($2.83 billion), well below LSEG’s consensus estimate of 5.6 billion euros. However, net sales reached 7.5 billion euros, exceeding expectations.
The company’s chief executive warned clients to remain cautious and said “the recovery will be slower than previously expected.”
After ASML plunged 16%, other global chipmakers also plunged. Nvidia fell 4.7% and AMD fell 5.2%.
Also on Tuesday, Bloomberg According to reports, Biden administration officials have discussed restricting the sales of Nvidia’s advanced artificial intelligence fragments to certain countries due to national security interests, further dampening investor sentiment towards the semiconductor industry.
ASML faces a tougher business outlook in China due to U.S. and Dutch export restrictions on its shipments.
Chief Financial Officer Roger Dassen said on Tuesday that he expected the company’s China business to “show a more normalized percentage of our orders and business.”
“As a result, we expect revenue from the Chinese market to account for about 20% of our total revenue next year,” he said. ASML said in its June quarter earnings report that 49% of its sales came from China.
— Ryan Brown contributed to this story.
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