Asian Chip Stocks Defy US Export Curbs, Rise Despite Restrictions
The semiconductor industry in Asia, excluding China, has shown resilience in the face of new US export curbs aimed at limiting Beijing’s access to advanced chip technology. On Tuesday, major Asian chip stocks rose, shrugging off the latest restrictions.
Taiwan Leads the Charge
Taiwan Semiconductor Manufacturing Company, the world’s largest contract chip supplier, saw its shares surge 2.4%. This uptrend was mirrored by several Japanese chip-related stocks, including Tokyo Electron, Lasertec, Advantest, and Renesas Electron, which gained 4.7%, 6.7%, 3.9%, and 2.2%, respectively.
South Korean Chip Makers Unfazed
The Biden administration’s latest curbs also target sales of high-bandwidth memory chips, which could impact South Korea’s SK Hynix and Samsung. However, shares of Samsung Electronics and SK Hynix rose 0.9% and 1.8%, respectively. According to Derrick Irwin, portfolio manager at Allspring Global Investments, the impact of these controls on South Korean players will be limited, as they can shift demand to other markets.
US Export Controls Expand
The Department of Commerce announced on Monday that it was adding 140 new companies to its export controls list, including Naura Technology Group, Piotech, and ACM Research. Shares of Naura Technology and ACM Research fell 3% and 1%, respectively, in China, while Piotech rose 1%. China’s largest chipmaker, Semiconductor Manufacturing International Corporation, fell 1.5% in Hong Kong.
US Secretary of Commerce Weighs In
US Secretary of Commerce Gina Raimondo stated that the new export controls are part of a targeted approach to limit China’s ability to access advanced technologies that pose a risk to national security. The latest restrictions include new controls on 24 types of manufacturing equipment and three types of software tools used for developing semiconductors.
Effectiveness of US Restrictions Questioned
Last month, the effectiveness of US chip restrictions was called into question when it was reported that a chip made by TSMC had been found in a Huawei product. The latest export restrictions aim to address compliance concerns and enhance the effectiveness of existing controls.
Industry Resilience
Despite the latest export curbs, Asian chip stocks have shown remarkable resilience, suggesting that the industry is adapting to the changing regulatory landscape. As the global semiconductor market continues to evolve, it remains to be seen how these restrictions will impact the industry in the long run.
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