A terrible ASML report crashed shares of semiconductor companies from Asia

The prematurely published ASML quarterly report was a surprise not only in its timing, but also in its content. Investors were upset due to the modest volumes of orders for the supply of equipment of this brand, upset by the lower revenue forecast for the next year and statements by the company’s management about the weakness of demand in the Chinese market. As a result, stock indices in Asia started the day lower after ASML shares fell by more than 16%.

Image source: Tokyo Electron

Let us recall that for ASML securities itself, the rate drawdown of more than 16% during one trading session was the strongest in 26 years. Investors were not reassured by the comments of some experts, who called the observed correction in demand temporary. The Japanese company Tokyo Electron, which works with ASML in a related segment, saw its stock price decline by almost 10%, as CNBC explains. Shares of Japanese chipmaker Renesas Electronics fell 3%, while equipment supplier Advantest fell 0.8%.

Taiwan’s TSMC, the world’s largest contract chip manufacturer, saw its share price decline by 3.3%, while contract electronics manufacturer Foxconn saw its stock price decline by 1.6%.

In South Korea, home to two of the world’s largest memory chip manufacturers, the impact of ASML’s statistics was also felt. Samsung Semiconductor shares fell in price by 1.9%, and SK hynix, the largest supplier of HBM family memory, escaped with a decline in its share price by 1.6%.

In general, Asian stock indices also fell slightly. Japan’s Nikkei 225 lost more than 2%, South Korea’s Kospi fell 0.6%, and Taiwan’s TWI fell 0.7%. AMD shares managed to fall in price by 5.2%, and Nvidia, which claimed to be the second largest company in the world by capitalization, faced a decline in its share price by 4.7%. The last two issuers could be influenced by rumors about the intentions of the US authorities to tighten restrictions on the supply of computing accelerators to the Middle East.