Shares of companies in the semiconductor industry fell due to the Biden administration's plans and Trump's statements

Shares of chipmaking companies declined on Wednesday, July 17, 2024, amid reports of tighter US export restrictions and rising geopolitical tensions caused by comments by former US President Donald Trump. This is reported by CNBC.

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%.

This drop came after information about possible export restrictions was reported by Bloomberg. The agency wrote that the US presidential administration is considering imposing stricter trade restrictions on foreign companies that continue to provide China with access to modern semiconductor microelectronics and equipment for its production.

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.

Donald Trump's comments added even more negative sentiment to semiconductor stocks. In an interview with Bloomberg Businessweek, he said that Taiwan should pay the US for defense.

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.