Major chip stocks, including ASML, Nvidia, AMD, and Intel, drop as Biden considers more restrictions on sales to China

From Forbes: 2024-07-17 07:46:24

Shares of ASML plummeted over 6% on Wednesday due to concerns about potential trade restrictions limiting sales to China, as President Biden considers harsher measures to restrict China’s access to advanced chip-making tools. This could impact other giants like Nvidia, AMD, and Intel, with shares dropping in pre-market trading.

The proposed Foreign Direct Product Rule would allow the U.S. to control exports on goods made by foreign companies using U.S.-origin technology, severely impacting companies like ASML and Tokyo Electron from selling to China. ASML’s European-listed shares fell nearly 8% to $984, while Tokyo Electron’s shares dropped over 7.4% on Wednesday.

The Biden administration has urged Dutch and Japanese officials to curb the export of advanced chip-making equipment to China, threatening to enforce FDPR rules if they don’t comply. This move is in response to U.S. semiconductor companies facing restrictions on selling to China while foreign firms don’t face the same limitations.



Read more at Forbes: Major Chip Stocks Slump After Biden Reportedly Considers More Restrictions On Sales To China