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Investing.com-- Shares of major Asian suppliers to Apple Inc (NASDAQ:AAPL) and NVIDIA Corporation (NASDAQ:NVDA) fell sharply on Monday, as investors assessed potential impacts from newly imposed U.S. tariffs on electronics and technology imports.
South Korea’s Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660), both key memory chip suppliers to Apple and Nvidia, plunged 5% and 8.1% respectively, as of 05:54 GMT.
U.S.-listed shares of Taiwan Semiconductor Manufacturing Co (TW:2330), the world’s largest contract chipmaker and a major foundry for both firms, closed 7% lower on Friday.
Hong Kong-listed shares of China’s Semiconductor Manufacturing International Corp (SMIC) (HK:0981), a key Nvidia chip supplier, plunged nearly 14%.
Japan’s Advantest Corp. (TYO:6857), which supplies chip testing equipment to Nvidia, slid more than 9%.
On April 2, U.S. President Donald Trump announced a 10% baseline tariff on all imports, with higher rates targeting specific countries, including 34% on Chinese goods, 24% on Japanese products, 25% on South Korean imports, and 32% on Taiwanese goods.
These measures aim to address trade imbalances but have raised concerns about increased costs in the technology supply chain.
Analysts warn that these tariffs could lead to higher production costs for companies like Apple and Nvidia, potentially resulting in increased consumer prices and dampened demand.
Suppliers face headwinds including reduced demand, potential shifts in manufacturing locations, and supply chain adjustments.