Bloomberg reported on the 11th that global semiconductor stocks have evaporated by 240 billion dollars as global semiconductor stocks have plunged due to the U.S. restrictions on semiconductor exports to China.
Taiwan’s TSMC plunged 7% on the Asian stock market on the 11th, marking the biggest drop. South Korea’s Samsung Electronics also plunged more than 3 percent, the biggest drop in a year. Tokyo Electronics of Japan is also plunging 5.8 percent.
Earlier, the Philadelphia Semiconductor Index, a group of U.S. semiconductor stocks, also plunged about 10% in the past two trading days.
As a result, global semiconductor stock market capitalization has evaporated by $240 billion over the past two trading days.
As stock prices of Asia’s leading semiconductor companies such as Samsung Electronics plunged, both Korea’s KOSPI and Japan’s Nikkei plunged more than 2% on the 11th, showing the highest drop in the Asian stock market.
On the 7th, the US administration of Joe Biden announced a wide range of export control measures, including a ban on exports to China for certain semiconductor chips.
Specifically, in the case of logic chips with △1814(nanometer) or less DRAM △ 128 stages or more and NAND flash △ 14 nanometers or less, U.S. companies must obtain permission from the U.S. authorities when exporting technologies and equipment. In addition, exports of certain semiconductors to China are prohibited regardless of where they are produced in the world.
Bloomberg predicted that U.S. restrictions on semiconductor exports to China will seriously hurt Asian tech stocks in line with the Fed’s aggressive interest rate hike and rising tensions in the Taiwan Strait.