Concerns about the global computer chip industry have led to a slump in technology stocks worldwide. Reports of potential further restrictions on exports of semiconductor equipment to China by the Biden administration, coupled with comments from former US President Donald Trump about Taiwan’s role in chip production, have heightened fears among investors.
In the US, the Nasdaq index closed 2.7% lower, and chip stocks have also fallen in Europe and Asia. Bob O’Donnell, chief analyst at TECHnalysis Research, predicts that the US will likely increase restrictions on semiconductor exports, but the extent of these restrictions remains uncertain.
In Asia, TSMC and Tokyo Electron saw declines in their stock prices, and similar trends were seen in Europe, with ASML experiencing an almost 11% drop after reports of potential curbs on semiconductor equipment exports to China.
The US Commerce Department, ASML, and Tokyo Electron declined to comment on the reports. The Biden administration has previously restricted China’s access to advanced chip technology, and Mr. Trump’s remarks regarding Taiwan have also added to concerns about potential disruptions in global chip supplies.
Despite these challenges, Marco Mezger, Executive Vice President of Neumonda, is optimistic about the long-term prospects of the semiconductor industry. Investors have reacted to the news, but Mezger believes that the overall business trend for the industry is on an upward trajectory.
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