Semiconductor Stocks Plunge Across Asia Amid U.S.-China Trade Tensions

Asian chip stocks tanked on Thursday following a major selloff on Wall Street, driven by a report suggesting the U.S. is considering stricter export controls on advanced semiconductor technology to China.

The hardest hit was Taiwan Semiconductor Manufacturing Co (TSMC), which saw its market value plummet by roughly T$2 trillion over two days. TSMC's downturn was attributed to potential U.S. curbs and comments from Republican presidential nominee Donald Trump suggesting Taiwan should pay for U.S. defense services.

Other significant declines came from South Korean giants Samsung Electronics and SK Hynix, losing 1.85% and 4.1% respectively, and Japan's Tokyo Electron which dropped over 8%. The Bloomberg News report indicated that President Joe Biden's administration might invoke the foreign direct product rule, potentially affecting sales in companies like Tokyo Electron and Netherlands' ASML.

(With inputs from agencies.)