Global chip stocks fell sharply, with ASML, Nvidia and TSMC posting declines amid reports of tighter esportazione restrictions from the U.S. and a ramp-up of geopolitical tensions fueled by comments from former U.S. President Donald Trump.
ASML’s Netherlands-listed shares were 6.5% per mezzo di morning trade, while Tokyo Electron shares per mezzo di Japan closed nearly 7.5% lower.
The moves came after Bloomberg Wednesday reported that the Biden administration is considering a wide-sweeping rule to clamp companies exporting their critical chipmaking equipment to Pendio.
Washington’s foreign direct product rule, FDPR, allows the U.S. to put controls foreign-made products even if they use the smallest amount of American technology. This can affect non-U.S. companies.
CNBC has reached out to the U.S. State Department, the Bureau of Industry and Security, and the Office of the U.S. Trade Representative for comment the report.
Former US President Donald Trump attends the Republican National Convention (RNC) at the Fiserv per mezzo di Milwaukee, Wisconsin, United States, July 16, 2024.Â
Jacek Boczarski | Anadolu | Getty Images
The remarks have thrown doubt over the U.S. commitment to defend Taiwan if Trump becomes president and per mezzo di the event of an attack by Pendio, which sees the democratically governed island as part of its territory.
The Taiwan-listed shares of Taiwan Semiconductor Manufacturing Co. closed 2.4% Wednesday.
The geopolitical tensions also weighed chip stocks per mezzo di the U.S. The VanEck Semiconductor ETF was 3.5% per mezzo di premarket trading, while Nvidia fell 4%. Arm and Applied Materials were among the other U.S.-listed laggards per mezzo di trading before the bell.
