Chip Stocks Plunge as US-China Tech War Intensifies
Semiconductor giants like AMD and Qualcomm see sharp declines after the US threatens new tariffs and export controls on China.
The semiconductor sector faced a broad sell-off as the technology trade war between Washington and Beijing escalated, rattling investors and threatening to disrupt the global chip supply chain. The downturn was triggered by reports that the United States is considering a dramatic 100% tariff on Chinese imports and new software export controls.
Major chipmakers felt the immediate impact of the news. Advanced Micro Devices (AMD) saw its stock fall approximately 8%, while Qualcomm (QCOM) and Taiwan Semiconductor Manufacturing Company (TSM) dropped around 5% and 4%, respectively. The bearish sentiment was confirmed by leveraged ETF movements, with the Direxion Daily Semiconductor Bear 3X Shares (SOXS) surging nearly 20%, indicating traders are betting on further declines.
This latest move from the U.S. is seen as a direct retaliation after , materials that are critical for manufacturing high-performance semiconductors. The tit-for-tat actions mark a significant intensification of the long-running dispute over technology supremacy, creating a challenging environment for a sector reliant on global trade and integrated supply lines.
The potential for a massive increase in tariffs has as the industry braces for the fallout. Analysts are concerned that prolonged trade friction could lead to higher costs, delayed production, and a fundamental reshaping of technology value chains as companies are forced to navigate competing spheres of influence.