Chip Stocks Dip Amid US-China Tensions

Chip stocks in Asia plummeted following a report suggesting the U.S. might impose stricter limits on exporting advanced semiconductor technology to China. Major companies like TSMC, SK Hynix, and Tokyo Electron saw significant losses. European sectors were also affected. The geopolitical tensions overshadowed strong earnings from leading tech firms.

Chip stocks in Asia tumbled on Thursday with their European counterparts off to a rocky start after news that the United States might impose tighter restrictions on exports of advanced semiconductor technology to China.

Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker, saw its shares plummet, losing approximately T$1.7 trillion ($52.13 billion) in market value over two days.

Donald Trump's comments about Taiwan paying for U.S. defense added to TSMC's woes, dropping its shares by 2.4%. Despite these issues, TSMC projected a third-quarter revenue surge of up to 34% year-over-year. Other Asian technology giants like South Korea's SK Hynix and Japan's Tokyo Electron reported substantial losses.

(With inputs from agencies.)