For example, ASML shares, which are listed in the Netherlands, fell by 11%, while Tokyo Electron shares in Japan closed with a drop of almost 7.5%. Shares of Arm, AMD, Marvell, Qualcomm, and Broadcom fell by more than 7%.
The drop in ASML shares occurred despite the fact that the company reported Q2 earnings that exceeded market expectations. However, 49% of its sales during this period came from China. This demonstrates how much ASML is at risk if restrictions are tightened. The company manufactures the machines needed to produce the most advanced chips in the world.
These statements called into question the US commitment to defend Taiwan if Trump becomes president and in the event of a Chinese attack. As a result, shares of Taiwan Semiconductor Manufacturing Co. listed on the Taiwan Stock Exchange fell by 2.4% on July 17.