Shares of TSMC, Samsung and Other Companies Collapsed

Shares of major Asian chipmakers including TSMC and Samsung fell on Tuesday after the United States imposed new sanctions on Chinese semiconductors.

Companies Collapsed

The impact of the new restrictions also extended to suppliers of chip manufacturing equipment, including Tokyo Electron and ASML.

Shares in Taiwan Semiconductor, the world’s largest contract chipmaker, fell 8.3 percent to a seven-year low. Shares of Samsung Electronics fell 3.9 percent (against this year’s record). Shares in SK Hynix fell 3.5 percent. US semiconductor giants Nvidia, AMD and Qualcomm fell more than 1%.

The market value has decreased

Dutch lithography equipment maker ASML fell 11 percent from Friday to Tuesday. 

Tokyo Electron, SK Hynix and Texas Instruments also posted losses. The industry’s total global market value dropped by more than $240 billion in just a few days.

US and China

The US actions are aimed at halting China’s efforts to develop its own microchip industry and strengthen its military capabilities. But these bans can affect parts from electric cars and aerospace equipment to devices, including smartphones. 

State media and Chinese officials have reacted to the actions of the Joe Biden administration in recent days, fueling rumors of an economic downturn and possible retaliation.