Taiwan’s TSMC Falls by 2.6%, Nvidia Headquarters [Photo by Yonhap News], ‘[Economist Reporter Woo Seung-min] As the U.S. government is reported to soon announce new semiconductor export restrictions targeting China, Nvidia, the leader in AI chips, saw its stock drop by over 4% on the 25th (local time).’,
‘On this day, Nvidia shares on the New York Stock Exchange closed at $136.02 (190,496 KRW), down 4.18% from the previous trading day.’,
‘The stock began in a neutral position but expanded its losses, falling below the $140 mark for the first time in 20 days since the 5th.’,
‘As a result, its market capitalization fell to $3.331 trillion, ceding its first-place position to Apple ($3.520 trillion), which saw its stock rise by 1.31% at the same time.’,
‘This contrasts with the Nasdaq index rising by 0.27%, due to news such as Scott Bessent, a famous Wall Street hedge fund manager, being nominated as Trump’s economic head for his second term.’,
‘The decline is attributed to the Biden administration’s reported plans to announce new semiconductor export restrictions targeting Chinese companies next week.’,
‘Reuters reported on the 22nd that, according to an email sent by the U.S. Chamber of Commerce to its members, up to 200 Chinese semiconductor companies were expected to be added to the “trade restriction list” with the introduction of additional regulations.’,
‘Being listed on the trade restriction list would block U.S. companies from conducting transactions with these firms.’,
‘In addition, another regulation, part of the AI semiconductor export restrictions, is expected to be announced next month, limiting the shipment of high-bandwidth memory (HBM) to China.’,
‘If the U.S. government enforces additional sanctions, Nvidia, which accounts for more than 80% of the AI chip market, could be most affected, as the market fears.’,
‘With the drop in Nvidia shares, TSMC, the world’s largest foundry (semiconductor contract manufacturing) company from Taiwan, also fell by 2.67%. TSMC exclusively manufactures Nvidia’s latest chips.’,
‘Apart from Nvidia and TSMC, other U.S. semiconductor stocks like Broadcom (0.36%), Qualcomm (1.29%), and AMD (2.01%) mostly rose.’,
‘As a result, the Philadelphia Semiconductor Index, composed of semiconductor-related stocks, also closed up by 0.65%.’