A worker produces chips at a semiconductor manufacturing company in Binzhou, China, on June 4, 2024.
Null Photo | Null Photo | Getty Images
Global semiconductor stocks fell on Wednesday after a drop in the Dutch semiconductor equipment maker’s stock price ASML announced disappointing sales forecasts, pushing down the sector’s global share price.
ASML stock extended its losses into its second day of European trading, falling 5%. The company’s shares fell 16% on Tuesday, wiping 49.2 billion euros ($53.6 billion) from its market capitalization in one day, according to CNBC calculations.
ASML’s decline also pushed other European semiconductor companies into the red on Wednesday. ASMI, a Netherlands-based company that supplies wafer processing equipment to the semiconductor manufacturing industry, fell 2.3%. The country’s semiconductor equipment maker BE Semion Ductor fell 1.9%.
Dutch-listed semiconductor company STMicroelectronics fell 1.2% and German chipmaker Infineon fell 1.1%. French semiconductor materials maker Soitec fell 0.9%.
decline of asia
Meanwhile, in Asia, stocks of Japanese semiconductor manufacturing companies Tokyo Electron recorded the biggest loss, falling nearly 10%. Renesas Electronics fell more than 3%, Advantesttesting equipment suppliers fell 0.8%.
Taiwan semiconductor manufacturing company and Hon Hai Precision Industry The companies, known internationally as Foxconn, fell by 3.3% and 1.6%, respectively.
South Korean semiconductor giant SK Hynix, which makes high-bandwidth memory chips for AI applications for Nvidia, traded 1.6% lower. Meanwhile, shares of Samsung Electronics, the world’s largest maker of dynamic random access memory chips, fell 1.9%.
Losses in the region’s semiconductor sector also dragged down major indexes. Japanese Nikkei Stock Average Although it decreased by more than 2%, Korean cospi down 0.6%, Taiwan weighted index It fell by 0.7%.
ASML reports early
Veldhoven, Netherlands-based ASML said in a report on Tuesday that it expects 2025 net sales to be between 30 billion euros and 35 billion euros ($32.7 billion to $38.1 billion). Ta. It was previously offered.
The company said net bookings for the September quarter were 2.6 billion euros ($2.83 billion), well below the LSEG consensus estimate of 5.6 billion euros. However, net sales exceeded expectations of 7.5 billion euros.
CEO of the company “The recovery will be slower than previously expected,” it said, warning customers to be cautious.
After ASML plunged 16%, other global chipmakers also plunged. Nvidia fell 4.7% and AMD fell 5.2%.
Also on Tuesday, Bloomberg Biden administration officials are discussing restricting sales of Nvidia’s advanced AI clips to certain countries on national security grounds, further dampening investor sentiment surrounding the semiconductor sector, the report said.
ASML faces a challenging business outlook in China due to export restrictions on shipments in the United States and the Netherlands.
Chief Financial Officer Roger Dassen said Tuesday that he expects the company’s China operations to show “a more normalized proportion of our order book and our business.”
“So we expect about 20% of our total revenue next year to come from China,” he said. ASML said in its June quarter earnings call that 49% of its revenue comes from China.
Eugene Xiao, head of China equity strategy at Macquarie Capital, said on CNBC’s “Squawk Box Asia” on Wednesday that ASML’s business in Asia is likely to continue to face headwinds.
He said that while it “makes a lot of sense” for ASML to continue working with China from an “economic perspective”, “there are broader issues between governments on economic issues”.
