Samsung stocks slips as the US limits China’s access to semiconductor

Joe Biden-led US government imposed curbs on China’s access to semiconductor technology, resulting, various stocks based on chipset/semiconductors falling down across Asia including Japan, South Korea and Taiwan.

According to the information, Samsung Electronics and Tokyo Electron Ltd.’s stocks also fell down due to the efforts of the United States govt to ensure international cooperation will limit them from exporting semiconductor to China.

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Adding to this, Taiwan’s TSMC, which just became the global leader in the semiconductor market plunged a record 8.3% on Tuesday. Following huge drops in stock values, the impact was also seen on the currency markets.

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Notably, South Korea’s won slumped more than 1.6% versus the greenback as Samsung semiconductor stocks lost as much as 3.9%, the most in a year. Furthermore, the Taiwan dollar dropped 0.7% amid losses in their stock markets.

As per the Bloomberg analysis, the new announcement done by the US already wiped out more than $240 billion from chip stocks globally since Thursday’s close.

Industry and market watchers predict that the US restrictions are expected to have “far-reaching implications.” The new limitations may create difficulties for manufacturers having chip production plants in China or outside the US.

Last Friday, the govt. of the United States announced new export curbs, and officials hinted that similar actions may be deployed in other countries to ensure international cooperation.

Chae Minsook, an analyst at Korea Investment & Securities wrote in a report – “With the latest measure, it would become difficult for China to manufacture and develop semiconductors because most semiconductor equipment are dominated by US and its allies,” such as Japan and Netherlands.”

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Chip-related stocks in Japan, South Korea and Taiwan slumped, contributing to a wipeout of more than $240 billion from the sector’s global market value after the Biden administration imposed curbs on China’s access to semiconductor technology.