It's concerning to see how export regulations are shaking the foundations of such a critical industry.
The global semiconductor market is once again at the center of geopolitical and economic tensions. Following Nvidia’s statement warning of potential multibillion-dollar losses due to newly imposed US export regulations, shares of chip manufacturers came under pressure. Both European and US-based companies experienced a decline in stock prices, while Dutch company ASML issued an uncertain outlook citing escalating tariff policies.
The market reaction was immediate and widespread across key industry players:
ASM International, STMicroelectronics, and Infineon Technologies opened the European trading session in the red.
US-listed NXP Semiconductors also recorded a drop in premarket trading.
Nvidia shares fell by more than 7% prior to Wall Street’s opening.
The decline followed Nvidia’s announcement that it may face losses of up to $5.5 billion. The projected shortfall stems from new US rules requiring special licenses to export high-performance chips, such as the Nvidia H20, to China.
These updated restrictions are an extension of policies originally introduced by the Biden administration and intensified under executive orders from Donald Trump. According to the new rules:
Not only Nvidia chips, but also products like AMD’s MI308 are now subject to mandatory export licensing.
The US Department of Commerce stated that these actions are intended to protect national and economic security.
The focus is on controlling exports of technology with strategic importance for artificial intelligence and defense applications.
Analysts view these measures as a sign of growing competition in advanced tech development between the US and China.
Uncertainty rippled through the entire semiconductor sector. Pre-market losses were recorded by:
AMD
Broadcom
Super Micro Computer
Intel Corporation
TSMC, a key supplier for Nvidia
Additionally, ASML, the world’s leading supplier of semiconductor manufacturing equipment, warned of increased uncertainty regarding its outlook for both this year and 2026. The company also reported that its Q1 order volume fell short of expectations.
The expansion of export controls and stricter licensing could:
Significantly disrupt global supply chains for advanced technology.
Increase the cost of chip development and distribution.
Further isolate China from cutting-edge innovations.
Force companies to reassess their supply strategies and international partnerships.
Market observers also warn of a broader impact on the global semiconductor and artificial intelligence sectors.
The latest US measures targeting chip exports to China pose a fresh challenge to the semiconductor industry. The market’s swift reaction highlights growing concerns among leading companies. With escalating US-China tech rivalry, tightening restrictions, and tariff-related risks, the outlook for the sector remains uncertain. In this evolving landscape, semiconductor firms will need to adapt quickly to maintain resilience and navigate shifting global trade dynamics.
