Bloomberg reported on the 17th (local time) that the market capitalization of semiconductor stocks belonging to the Philadelphia Semiconductor Index in the U.S. stock market evaporated by about 100 trillion won in Korean money in a day. This is because semiconductor stocks in the U.S. fell all at once as the U.S. Department of Commerce imposed additional sanctions on China.
On the same day, U.S. semiconductor stocks fell in unison, with the stock price of Nvidia, a leading U.S. semiconductor company, plunging nearly 5 percent in the New York stock market. As a result, the market capitalization of 30 semiconductor companies included in the Philadelphia Semiconductor Index, a semiconductor group, evaporated $73 billion (about 98.99 trillion won) within a day, Bloomberg said.
Earlier, the U.S. government tightened its export control of artificial intelligence (AI) semiconductors to China by banning exports of AI chips that have lower specifications than previous export control measures to China. It also decided to control the export of semiconductor equipment to companies headquartered in Macau or subject to U.S. arms embargoes to prevent China from circumventing sanctions.
On the same day, the U.S. Department of Commerce announced measures to control exports of semiconductors to China. The problem is that U.S. semiconductor companies such as NVIDIA are highly dependent on China, accounting for more than 30% of total sales.
As a result, Dara Nvidia shares plunged 4.68% from the previous trading day to $439.38 on the New York Stock Exchange. As a result, the market capitalization decreased to $1.85 trillion, barely rising to $1 trillion. NVIDIA is the first semiconductor company in the world to surpass $1 trillion in market capitalization.
JULIE KIM
US ASIA JOURNAL
