Chip shares drop on record US plans to tighten China curbs – BBC Information

Symbol caption, ASML makes chip production equipmentArticle informationAuthor, João da SilvaRole, Industry reporter18 July 2024Updated 1 hour agoTechnology shares all over the world have slumped on fears concerning the international laptop chip trade.The sell-off got here after a record that the Biden management might be set to additional tighten restrictions on exports of semiconductor apparatus to China.Feedback by means of former US President Donald Trump that Taiwan, the largest manufacturer of chips, must pay for its personal defence added to the worries.In the USA, the tech-heavy Nasdaq index closed 2.7% decrease on Wednesday, whilst chip shares have additionally tumbled in Europe and Asia.”Irrespective of the end result of the elections… I feel we can see the USA build up one of the vital restrictions” stated Bob O’Donnell, leader analyst at TECHnalysis Analysis.”How some distance they’re going to take it, although, is the massive query.”In Asia, chip making massive TSMC misplaced 2.4% on Thursday, whilst semiconductor apparatus maker Tokyo Electron used to be down by means of round 8.8%.That got here after Nvidia closed 6.6% decrease in New York on Wednesday, whilst AMD misplaced greater than 10%.In Europe, stocks in ASML, which makes chip making machines, tumbled by means of nearly 11%.The falls got here after Bloomberg Information reported on Wednesday that the USA govt is getting ready to impose its tightest curbs but on semiconductor making apparatus to China if corporations like ASML and Tokyo Electron proceed to present the rustic get entry to to their complex chip generation.America Trade Division, ASML, and Tokyo Electron declined to remark when contacted by means of BBC Information.The Biden management has up to now taken steps to limit China’s get entry to to complex chip generation.In October, it limited exports to China of complex semiconductors utilized in synthetic intelligence (AI) generation.The remarks on Taiwan by means of Mr Trump additionally hinted at imaginable disruption of world chip provides. Taiwan produces many of the global’s complex chips.“Traders at all times react to any remarks from the USA however in spite of those feedback, the long run industry development for the semiconductor trade is obviously going up,” stated Marco Mezger, Govt Vice President of reminiscence chip generation corporate Neumonda.

Author: OpenAI