Asian chip stocks tumbled on Thursday following news that the US might impose tighter curbs on semiconductor technology exports to China. Taiwan Semiconductor Manufacturing Co (TSMC) saw its shares drop 2.4%, losing around T$1.7 trillion ($52.13 billion) in market value over two days. Comments by Donald Trump on Taiwan’s defense payments to the US added to the negative sentiment.
Despite posting strong earnings and forecasting a 34% revenue surge in Q3, TSMC was hit hard. Other Asian tech giants like SK Hynix and Tokyo Electron also suffered significant losses. The Global X Asia Semiconductor ETF fell 1.74%.
In Europe, the STOXX 600 rose 0.2%, but the technology sub-index hit a six-week low, trading 0.37% lower. ASML, a key player in the sector, saw its shares tick up 0.3% after a 10% drop despite strong earnings linked to AI.
Geopolitical tensions and potential US export curbs overshadowed strong earnings, impacting investor sentiment and driving a shift from Big Tech to smaller value stocks.