Posted on 10/17/2022 4:24:48 AM PDT by FarCenter
On October 7, the US Department of Commerce expanded licensing requirements for exports of advanced semiconductors and the equipment that’s used to make them to cover all shipments to China and not just shipments to particular companies.
The share prices of companies expected to be affected had already dropped, discounting previously announced sanctions and the downturn in the semiconductor cycle that was already underway.
From their 52-week highs to recent 52-week lows: Intel (INTC) was down 56%; Micron (MU) was down 50%; Nvidia (NVDA) was down 69% (its products having been directly targeted by the Biden administration); and AMD (AMD) (also directly targeted) was down 67%.
Among US semiconductor equipment companies: Applied Materials (AMAT) was down 57%; Lam Research (LRCX) was down 59%; and KLA (KLAC) was down 45%.
Outside the United States, ASML (ASML) of the Netherlands was down 59% from 52-week high to 52-week low. Japanese equipment makers Tokyo Electron (TYO 8035) and Screen Holdings (TYO 7735) were down 50% and 44%, respectively.
Japanese semiconductor makers Renesas (TYO 5723) and Rohm (TYO 6963) were down only 27% and 28%, but they focus on automotive and industrial semiconductors, not the artificial intelligence and high-performance computing devices that obsess the Biden administration. Their 52-week lows were last March.
SMIC (HKG 0981), China’s top IC foundry, was down 40% while TSMC (TPE 2330) was down 43% – a relatively strong performance under the circumstances.
In terms of share price performance and investor returns, American companies and ASML have been hit harder than the Chinese. That might seem ironic considering the measures target China, but it is the market’s discounting mechanism at work.
US government policy is aggravating what was already shaping up to be a severe industry downturn – and friendly fire is a real problem.
(Excerpt) Read more at asiatimes.com ...
Wrong. Chinese computer chips represent a national security threat to the United States of America as it's been proven they put spyware in the microcode of their computer chips.
It's also the reason that Huawei and their 5g equipment has been banned from the United States: concerns over spyware and their being a potential national security threat.
Damned propaganda. What idiot thinks the chip wars are to help traitorous chip manufacturers make more profit? They’re to prevent them from selling out their nation in the pursuit of dollars so the Chinese don’t have the tech needed to obliterate humankind.
Exactly, Asia Times is a CCP TOOL!
Don't be mistaken into thinking TSMC belongs to China. It's from Taiwan.
Of course it does. T is literally the first letter of their acronym.
Very good video teaching trust, if a person of company can’t be trusted it won’t last long and be successful.
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