Despite the decline in chip stocks, the Dow Jones Industrial Average and S&P 500 saw gains, continuing a post-election rally sparked by former President Donald Trump's victory over Vice President Kamala Harris. The election result also led to a surge in Bitcoin value. With Trump's return to the White House, the chip war between the U.S. and China could escalate, potentially affecting more Chinese semiconductor firms. TSMC has reportedly stopped manufacturing AI chips with the advanced 7-nanometer process for its Chinese customers, anticipating updated U.S. export controls on chips sold to China by the outgoing Biden administration.
Key takeaways:
- Chip stocks, including Intel, Arm, Broadcom, Qualcomm, Micron, Nvidia, Advanced Micro Devices, and Taiwan Semiconductor Manufacturing Company, experienced a decline in shares.
- The U.S. has reportedly ordered Taiwan Semiconductor Manufacturing Company to stop shipping advanced AI chips to Chinese customers, imposing export restrictions on advanced chips made with the 7-nanometer process or smaller.
- Despite the decline in chip stocks, the Dow Jones Industrial Average and S&P 500 saw gains, and Bitcoin reached a record $84,000 following former President Donald Trump's election victory.
- Taiwan Semiconductor Manufacturing Company has reportedly stopped manufacturing AI chips with the advanced 7-nanometer process for Chinese firms, in anticipation of updated U.S. export controls on chips sold to China by the outgoing Biden administration.