Shares of chipmakers around the world fell sharply on Monday, extending a week's decline, as investors weighed the impact of President Trump's tariffs on key chip-making regions such as Taiwan and other Asian countries with large electronics assembly plants, writes investing.
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President Trump announced last week that the United States would impose 32% tariffs on Taiwan and 34% on China. In response, Beijing imposed its own 34% tariff on American goods.
However, Taiwan President Lai Ching-te said his government would not retaliate, instead hoping for talks with Washington to soften the impact of the US tariffs.
Market decline
The tariff announcements sent global markets tumbling on Thursday and Friday, wiping out $6.6 trillion in U.S. stocks across sectors. The market's decline deepened on Monday, with semiconductor stocks extending the previous week's decline.
Shares of Taiwan Semiconductor Manufacturing Co., the world's largest contract chip maker, closed down 10%.
Shares of South Korean memory chip maker SK Hynix, which supplies Nvidia, closed down nearly 9.6%.
Shares in Dutch semiconductor equipment maker ASML Holding and its smaller rival ASM International fell more than 4% in European trading. Shares in German chip maker Infineon Technologies fell nearly 6%.
In the U.S., Nvidia shares fell 2% in pre-market trading, while Intel shares fell 2.6%.
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