US AI chip export restrictions to China reflected in stock prices
Asian chip manufacturers and related stocks mostly fell on Wednesday after the US announced new restrictions on AI chip exports to China.
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Shares of chip manufacturing giant Taiwan Semiconductor Manufacturing Corp fell by as much as 1.27 percent, while its counterpart Hon Hai Precision Industry, also known as Foxconn, lost 0.47 percent in value.
On the other hand, shares of domestic Chinese chipmaker SMIC rose by as much as 4.62 percent, but later pared gains to 2.43 percent. Its counterpart Hua Hong Semiconductor lost 0.41 percent.
STOCKS IN THE US ALSO EXPERIENCED A DECLINE
Shares of popular chipmakers fell on Tuesday after the US Department of Commerce announced plans to tighten restrictions on the sale of advanced AI chips to China.
Nvidia shares lost 7 percent in value, while AMD experienced a decline of approximately 4 percent. Marvell Technology, Intel, and Broadcom each saw losses of approximately 3 percent.
The US government stated that the new rules aim to close loopholes that emerged following the restrictions imposed on AI chip exports last year.