Tech & Innovation•18 Jul ’24 10:54Authors: ANP and Julian Verbeek
ASML seemed to recover on the Amsterdam stock exchange on Thursday, but the share saw a small opening profit quickly evaporate and fell 1.1 percent. The chip machine manufacturer lost around 11 percent of its market value the day before. Other chip companies also showed significant losses on Wednesday due to fears of stricter American rules for exports to China.
Fears of further trade restrictions overshadowed the strong quarterly results that ASML released on Wednesday. Analysts at DZ Bank removed ASML from their buy list, while experts at Fubon Securities placed the stock on the buy list after the price drop. On the Asian stock markets, chip companies continued to fall on Thursday. For example, the large Taiwanese chip manufacturer TSMC lost more than 2 percent, despite better than expected results in the second quarter. TSMC is an important customer of ASML. Industry peers ASMI and Besi gained 0.1 and 0.7 percent.
‘Trump forgets here that the US cannot do without the chip production of Taiwan’s TSMC’
Joe van Burik
On top of that, former US President Donald Trump said that Taiwan should contribute to its own defense against China, as far as he is concerned. Taiwan is the largest chip manufacturer in the world, which means that destabilization in Asia could have far-reaching effects on the chip industry. ‘Trump forgets here that the US cannot do without the chip production of Taiwanese TSMC’, says Joe van Burik, tech journalist for BNR Digitaal, in the Tech Update.
The US has its own chip manufacturers Intel and GlobalFoundries, ‘but they are not that big’. The share price of these American chip makers went up by 8 and 14 percent respectively. ‘But it is naive to think that they could actually take over the entire role of TSMC.’
‘But it is naive to think that they could actually take over the entire role of TSMC’ (ANP / Ton Toemen Photography)
