{"id":9760,"date":"2022-08-02T14:21:28","date_gmt":"2022-08-02T14:21:28","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=9760"},"modified":"2022-08-02T14:21:28","modified_gmt":"2022-08-02T14:21:28","slug":"semiconductor-stocks-under-pressure-as-taiwan-tensions-mount","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/technology\/semiconductor-stocks-under-pressure-as-taiwan-tensions-mount\/","title":{"rendered":"Semiconductor stocks under pressure as Taiwan tensions mount"},"content":{"rendered":"<p>Semiconductor stocks fell globally on Tuesday as an expected visit by U.S. House of Representatives Speaker <a href=\"https:\/\/twitter.com\/SpeakerPelosi\">Nancy Pelosi<\/a> to Taiwan, which China claims as its territory, fueled a fresh escalation in tensions between Washington and Beijing.<\/p>\n<p>China views the visit by Pelosi, second in the line of succession to the U.S. presidency and a long-time critic of China, as sending an encouraging signal to the pro-independence camp in Taiwan and has repeatedly warned against it.<\/p>\n<p>Taiwan is home to the world\u2019s biggest manufacturer of semiconductors on contract, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (2330.TW). Shares of the company closed down 2.4%, while peer United Microelectronics Corp (UMC) (2303.TW) fell 3%.<\/p>\n<p><em><strong>Read more:\u00a0<a href=\"https:\/\/dailyausaf.com\/en\/world\/kremlin-expresses-solidarity-with-china-over-taiwan.html\">Kremlin expresses solidarity with China over Taiwan<\/a><\/strong><\/em><\/p>\n<p>Taiwanese stocks (.TWII) dropped 1.6%, marking their biggest percentage decline in three weeks, while stocks in China posted their biggest fall in more than two months as mounting tensions unsettled Asian financial markets.<\/p>\n<p>&#8220;The outlook for trade in Asia is likely to weigh on semiconductors, given how much of the world\u2019s global production comes from Taiwan,&#8221; said Michael Hewson, chief markets analyst at CMC Markets UK.<\/p>\n<p>Semiconductor stocks globally felt the heat. Germany\u2019s Infineon (IFXGn.DE) declined 2.3%, while Dutch firms ASML (ASML.AS), ASMI (ASMI.AS) and BESI (BESI.AS) fell between 3% and 4%.<\/p>\n<p>U.S. chip stocks such as Nvidia Corp (NVDA.O), Intel Corp (INTC.O), Qualcomm (QCOM.O) and Micron Technology Inc (MU.O) dipped more than 1% each in trading before the bell.<\/p>\n<p>&#8220;This market reaction is expected following the strong performance of equity markets in July,&#8221; said Andrea Cicione, head of strategy at TS Lombard in London.<\/p>\n<p>&#8220;The longer term impact is unlikely to be significant unless the situation escalates, which wouldn\u2019t be my expectation right now.&#8221;<\/p>\n<p>Pelosi was set to visit the island on Tuesday, three sources said, as several Chinese warplanes flew close to the median line dividing the Taiwan Strait.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Semiconductor stocks fell globally on Tuesday as an expected visit by U.S. House of Representatives Speaker Nancy Pelosi to Taiwan, which China claims as its territory, fueled a fresh escalation in tensions between Washington and Beijing. China views the visit by Pelosi, second in the line of succession to the U.S. presidency and a long-time [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":9761,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[470,536,6280,855],"class_list":["post-9760","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-china","tag-germany","tag-nancy-pelosi","tag-uk"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/9760","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=9760"}],"version-history":[{"count":0,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/9760\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/9761"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=9760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=9760"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=9760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}