Understanding the Market | Chip stocks collectively decline, Intel's performance collapses, US reportedly to introduce new measures restricting Chinese chips
Chip stocks collectively fell, as of the time of publication, ASMPT fell by 5.94% to HKD 75.25; Hua Hong Semiconductor fell by 4.04% to HKD 19.72; SMIC fell by 1.29% to HKD 16.84; Shanghai Fudan fell by 1.01% to HKD 11.7. On the news front, chip giant Intel's latest financial report shows that its second-quarter performance and third-quarter guidance are both below market expectations. Furthermore, starting from the fourth quarter, the company will suspend dividends for the first time since 1992. Intel's CEO stated that the outlook for the second half of this year is more challenging than previously expected, requiring bolder actions to address the issues of high costs and low profits. Overnight, chip stocks in the U.S. all fell sharply, with Qualcomm dropping over 9% and NVIDIA dropping over 6%. In addition, it is reported that the Biden administration plans to further tighten restrictions on chip exports to China, with new regulations expected to be issued next month, allowing the U.S. to control products manufactured abroad as long as they use even a tiny bit of U.S. technology. However, companies from Japan, the Netherlands, and South Korea such as Tokyo Electron and ASML will be exempted
According to the Wisdom Finance APP, chip stocks collectively fell. As of the time of publication, ASM Pacific Technology (00522) fell by 5.94% to HKD 75.25; Hua Hong Semiconductor (01347) fell by 4.04% to HKD 19.72; SMIC - Semiconductor Manufacturing International Corporation (00981) fell by 1.29% to HKD 16.84; Shanghai Fudan Microelectronics (01385) fell by 1.01% to HKD 11.7.
On the news front, chip giant Intel's latest financial report shows that its second-quarter performance and third-quarter guidance are both below market expectations. Furthermore, starting from the fourth quarter, the company will suspend dividends for the first time since 1992. Intel's CEO stated that the outlook for the second half of this year is even more challenging than previously expected, requiring bolder actions to address the issues of high costs and low profits. Overnight, chip stocks in the US fell across the board, with Qualcomm dropping over 9% and NVIDIA falling over 6%.
Additionally, it has been reported that the Biden administration plans to further tighten restrictions on chip exports to China. New regulations are expected to be issued next month, allowing the US to control products manufactured abroad as long as they use even a tiny bit of US technology. However, companies from Japan, the Netherlands, and South Korea such as Tokyo Electron and ASML will be exempted