Tech stocks around the world dropped due to fears about the global computer chip industry. This selloff happened after reports that the Biden administration might further restrict semiconductor equipment exports to China.
Additionally, former President Donald Trump’s comments that Taiwan, the largest chip producer, should pay for its own defense increased concerns.
In the US, the Nasdaq index fell by 2.7%, and chip stocks dropped in Europe and Asia as well. For example, TSMC in Asia was down over 3%, and Tokyo Electron fell by around 9.5%. In the US, Nvidia fell by 6.6%, and AMD lost over 10%. In Europe, ASML shares tumbled almost 11%.
Bloomberg News reported that the US government is preparing strict curbs on semiconductor equipment exports to China if companies like ASML and Tokyo Electron continue providing advanced chip technology to the country.
Both ASML and Tokyo Electron did not comment when contacted by the BBC. The US Commerce Department was also asked for a statement.
The Biden administration has already restricted China’s access to advanced chip technology, such as those used in artificial intelligence, last October.
Trump’s comments about Taiwan hinted at possible global chip supply disruptions since Taiwan produces most of the world’s advanced chips.
Bob O’Donnell, chief analyst at TECHnalysis Research, mentioned that regardless of election outcomes, the US is likely to increase restrictions, though the extent of these measures is uncertain.
For more details, you can refer to the original article by BBC News.
https://www.bbc.com/news/articles/c7241wmknm3o