Semiconductor Stocks Retreat as U.S. Plans to Revoke Export Waivers

Major techs and semiconductor companies give up on early-trading gains after the report stating that U.S. Commerce Department plans to revoke waivers allowing South Korean and Taiwanese chipmakers (ex. Samsung, SK Hynix, TSMC) to export American semiconductor equipment to their factories in China without individual licenses. 

The Philadelphia Semiconductor Index is down 0.8% after the report release. Lam Research's shares took the biggest hit (-3.13%), with other key players also trading in the red (Nvidia: -1.1%; Intel: -1.7%, Broadcom: -1.6%, Qualcomm: -1.3%).

The move aims to tighten controls on U.S. technology transfers to China, mirroring China’s export restrictions on rare-earth materials, and reflects a broader national-security push to limit China’s technological advances. Diplomatically, this decision risks undermining the recent fragile U.S.–China trade truce and straining relations with key U.S. allies South Korea and Taiwan. 

The Chinese fabs affected produce essential chips used in cars, electronics, and other goods, though generally not the most advanced technologies. While immediate shutdowns are unlikely, tighter restrictions could disrupt operations and global supply chains over time. The companies may seek individual licenses or shift to Japanese and European suppliers, but internal U.S. government disagreement and fears of empowering Chinese rivals add complexity to the policy’s impact.

The US100 fell sharply below key resistance levels, delaying any potential recovery toward February’s all-time highs. Source: xStation5