On Friday, the United States authorities announced an increase in export restrictions on China in order to curb the technological development of this foreign-policy rival, and yesterday's quotations of the shares of many companies in the semi-conductor sector went down, reaching the worst since October 2008, and investors realized that the imposition of additional sanctions against China would have a global impact on the world's semiconductor industry.
According to Bloomberg, shares in TSMC, which controls more than half of the market for contract chip services, have fallen by more than 7%, which has not been observed since May 2021. Samsung Electronics shares have gone by 3.9%, SK hynix securities have gone by 3.5%. They have not been sidestepped by Tokyo Electric securities. New export restrictions prohibit foreign suppliers of lithographic equipment from shipping products to China if they can make chips with specified technical parameters.
Jefferies Financial Group analysts have expressed concern that the new US sanctions limit not only the supply of components to China but also the movement of international capital. Citi experts have added that anti-Chinese sanctions will also target companies such as Intel, AMD and NVIDIA, which are in some way involved in the supply of components for supercomputer systems. The impact of sanctions on their business may be reflected in a decline in total revenues of 5-10% as forecasters expect. The memory business will also be damaged, but American companies such as Microsoft Technology and Western Digital Corporation may benefit from the slowdown of Chinese rival YMTC.