Global chip stocks extend losses amid Trump’s tariffs

Published 07/04/2025, 13:12
© Reuters.

Investing.com -- Chip stocks worldwide opened sharply lower on Monday, continuing the downward trend from the previous week. This comes in the wake of investors assessing the impact of President Trump’s tariffs on major chip-making regions such as Taiwan and other Asian countries with large electronics-assembly operations.

President Trump announced last week that the U.S. was imposing 32% tariffs on Taiwan and 34% on China. In response, Beijing retaliated with its own 34% tariff on U.S. goods.

Taiwan’s President Lai Ching-te, however, stated that his government would not retaliate, instead hoping to negotiate with Washington to lessen the effects of the U.S. tariffs.

The tariff announcements sparked a drop in global markets on Thursday and Friday, erasing $6.6 trillion in U.S. stocks across different sectors. The market decline intensified on Monday, with semiconductor stocks continuing the losses from the previous week.

Shares of Taiwan Semiconductor Manufacturing Co. (TSE:2330), the world’s largest contract chip maker, closed 10% lower.

South Korean memory-chip maker SK Hynix’s shares, which supplies Nvidia, closed nearly 9.6% lower.

In European afternoon trading, shares of Dutch semiconductor-equipment maker ASML Holding (AS:ASML) and its smaller competitor ASM International (AS:ASMI) fell by more than 4%. German chip maker Infineon (OTC:IFNNY) Technologies saw a nearly 6% drop,

In the U.S., Nvidia (NASDAQ:NVDA) shares were down 2% in premarket trading, and Intel (NASDAQ:INTC) stock fell by 2.6%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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