[ad_1]
Chip-related stocks, including Apple Inc AAPL-supplier Taiwan Semiconductor Mfg. Co. Ltd. TSM and Samsung Electronics Co Ltd SSNLF, tanked on Tuesday morning as traders and investors returning from holiday digested the Biden administration’s new curbs on China’s access to U.S. semiconductor technology.
Read Also: Investing For Beginners
Taiwan Semiconductor shares dropped as much as 7% in morning trade on the island, while Samsung shares fell close to 4% in Korea. SK Hynix Inc. HXSCL slid over 3% in morning trade, while Tokyo Electron Ltd. TOELY shares shed over 5%.
The Philadelphia Stock Exchange Semiconductor Index SOX fell 3.5% on Monday to hit its lowest level since November 2020, reported Bloomberg.
In addition to restricting U.S. sales of semiconductor technology to China, the new rules also require foreign companies to license American tools used to produce high-end chips sold to China.
Expert Take: Jefferies Financial Group Inc. JEF analysts wrote in a note that the new rules may increase some of the headwinds around China businesses in two areas: restrictions on a broader group of supercomputer chips, and restrictions on multinational capital investment in China, the report said.
Read Next: What New China Semiconductor Restrictions Mean For US Investors
[ad_2]
Image and article originally from www.benzinga.com. Read the original article here.