February 25, 2025. Shares of leading Japanese semiconductor companies fell sharply following reports that US President Donald Trump's administration is considering tougher restrictions on semiconductor exports to China. According to Bloomberg News, these measures are aimed at limiting Beijing's technological potential and may include a ban on the supply of advanced chip manufacturing equipment.
Against the background of this news, shares of Tokyo Electron Ltd. fell by 4.4%. Similar dynamics are observed among other Asian semiconductor manufacturers, reflecting investor concerns about the possible consequences of the new restrictions.
The discussed measures may include a ban on the supply of advanced chip manufacturing equipment to China, as well as restricting Chinese companies' access to high-performance processors used in artificial intelligence and supercomputers. In addition, the possibility of restricting the export of certain types of chips manufactured by Nvidia and AMD without appropriate licenses is being considered.
The Trump administration is also putting pressure on key allies, including Japan and the Netherlands, to tighten their export restrictions on China. Recently, US representatives held meetings with Japanese and Dutch colleagues to discuss the possibility of restricting access for engineers from Tokyo Electron Ltd. and ASML Holding NV to servicing semiconductor manufacturing equipment in China.
Although negotiations are at an early stage and may take several months, the potential introduction of new restrictions could significantly affect the global semiconductor supply chain and increase tensions in trade relations between the US and China. Investors and analysts are closely monitoring the situation, assessing the potential risks for the industry.
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