Asian chip stocks fall on ASML's disappointing forecast, possible U.S. export cap

Asian spot stocks fell connected Wednesday aft Dutch semiconductor instrumentality shaper ASML posted disappointing income forecasts, driving down planetary stocks successful the sector.

Shares of Japanese semiconductor manufacturing steadfast Tokyo Electron logged the biggest loses, dropping astir 10%. Renesas Electronics fell implicit 3%, and Advantest, a investigating instrumentality supplier dipped 0.8%.

Taiwan Semiconductor Manufacturing Company and Hon Hai Precision Industry — known internationally arsenic Foxconn — fell arsenic overmuch arsenic 3.3% and 1.6, respectively.

South Korean chipmaking heavyweight SK Hynix, which manufactures precocious bandwidth representation chips for AI applications for Nvidia, traded 1.6% lower. While Samsung Electronics, the world's largest shaper for dynamic random-access representation chips, saw its shares driblet 1.9%.

Losses successful region's semiconductor assemblage besides dragged down large indexes. Japan's Nikkei 225 mislaid much than 2%, South Korea's Kospi dipped 0.6% and the Taiwan Weighted Index slid 0.7%.

In a study connected Tuesday, ASML, which is based successful Veldhoven, Netherlands, said it expects nett income for 2025 to travel successful betwixt 30 cardinal euros and 35 cardinal euros ($32.7 cardinal and $38.1 billion), astatine the little fractional of the scope it had antecedently provided.

Net bookings for the September 4th were 2.6 cardinal euros ($2.83 billion), the institution said — good beneath the 5.6 cardinal euro LSEG statement estimate. Net sales, however, bushed expectations coming successful astatine 7.5 cardinal euros.

The company's CEO warned of cautiousness among customers and said a "recovery is much gradual than antecedently expected."

After ASML tanked 16%, different planetary chipmakers plunged. Nvidia fell 4.7% and AMD mislaid 5.2%.

Also connected Tuesday, Bloomberg reported that that Biden medication officials had discussed limiting income of precocious AI clips from Nvidia to definite countries successful the involvement of nationalist security, further dampening capitalist sentiment astir the semiconductor sector.

ASML has faced a tougher concern outlook successful China owed to U.S. and Dutch export restrictions connected its shipments.

CFO Roger Dassen said Tuesday that helium expects the company's China concern to amusement a "more normalized percent successful our bid publication and besides successful our business."

"So we expect China to travel successful astatine astir 20% of our full gross for adjacent year," helium said. In its June-quarter net presentation, ASML said that 49% of its income travel from China.

— Ryan Browne contributed to this story.