Semiconductor stock prices have plummeted due to concerns about U.S. government restrictions on the semiconductor equipment industry.
On Friday, shares of chip companies plummeted after the Wall Street Journal reported that President Trump is considering implementing new restrictions to control China's access to semiconductor technology. The decline occurred simultaneously across the market.
Taiwan Semiconductor Manufacturing Co. (TSMC) dropped 2.5% while the Philadelphia Semiconductor Index fell 2%. Major names like Applied Materials fell 4%. Dutch equipment manufacturer ASML Holding NV also suffered a 1.9% loss. Investors are concerned about the possibility of being cut off from export licenses for semiconductor equipment to China.
The new restriction policy is based on partner licensing principles.
The U.S. Department of Commerce, through Mr. Jeffrey Kessler, has warned companies like TSMC, Samsung Electronics, and SK Hynix about the potential revocation of current exemptions. These licenses allow them to use U.S. chip manufacturing equipment in China. If revoked, the global chip supply chain will face significant disruptions.
The U.S. administration explains that the new measures are reciprocal, aimed at balancing the licensing policy for companies exporting to China, while also protecting national interests. They assert that this is not intended to hinder the operations of businesses in the semiconductor field.
This policy could strain U.S.-China relations.
The U.S. emphasizes that the new regulations aim to align with how China manages rare mineral exports. However, the enforcement of these limits comes at a time when the two superpowers are negotiating a trade agreement in London. This could easily lead to misunderstandings or be seen as the U.S. breaking an agreed-upon deal.
Industrial allies like South Korea and Taiwan are at risk of being heavily impacted. Super chip factories in China, owned by Samsung, TSMC, or SK Hynix, could face difficulties losing exemptions, especially with Samsung's factory in Xi'an, a critical memory and logic production center.
Businesses are preparing contingency plans amid the licensing dispute.
Industry leaders predict that to maintain operations in the Chinese market, they will need to seek special permission or look for supplies from Japanese or European suppliers not bound by U.S. limits. However, the decision to revoke these licenses is still not official and is under review by the administration.
There is internal dissent within the U.S. government, particularly in the Department of Defense, concerned that lifting these restrictions could allow China to develop its domestic technology market. However, Mr. Jeffrey Kessler and the national security team argue that, on the contrary, stricter control policies are needed to curb China's technological ambitions.
The impact of the dispute may extend to allied economies.
In the context of the ongoing battle over chip export limits, major brands such as Samsung, TSMC, and SK Hynix have reached out to various governments to oppose new restrictions. These companies have invested billions of USD in their production networks in the United States and support Washington's technology strategy against China.
If the exemptions are revoked, they worry that operations at factories in China will be disrupted, directly affecting their competitiveness, especially high-end chip manufacturing facilities like Samsung's factory in Xi'an, which produces advanced memory and logic chips.
This risk not only threatens U.S.-South Korea-Taiwan cooperation but could also change the global landscape of the chip technology industry, causing significant losses for supply chains and related value chains.
Source: https://tintucbitcoin.com/tsmc-va-co-phieu-chip-giam-do-trump/
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