Semiconductor chip stocks, including Nvidia Corp (NASDAQ:NVDA), Broadcom Inc (NASDAQ:AVGO), Taiwan Semiconductor Manufacturing Co (NYSE:TSM), Intel Corp (NASDAQ:INTC), Arm Holdings (NASDAQ:ARM), Marvell Tech (NASDAQ:MRVL), are trading lower on Friday.
The fall comes amid reports indicating Washinton’s plans to end waivers for chipmakers to send American technology to China, the Wall Street Journal reported Friday, citing unnamed sources familiar with the matter.
The stock movement bears testimony to the interconnectivity of the semiconductor ecosystem, which includes semiconductor companies and suppliers of materials, equipment, and specialized services.
So far, chipmakers Samsung Electronics (OTC:SSNLF), SK Hynix, and Taiwan Semiconductor could ship American chip-making equipment to their factories in China without applying for a separate license.
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Jeffrey Kessler, head of the Commerce Department, told the chipmakers about Washington’s plans to cancel those waivers, WSJ reported. They said Kessler described the action as part of the Trump administration’s crackdown on critical U.S. technology going to China.
Last week, President Donald Trump confirmed the China trade deal after two days of negotiations in London. The U.S. said it will continue applying 55% tariffs on selected Chinese imports, while China will impose a 10% tariff rate on U.S. goods.
Earlier, Arm CEO Rene Haas had condemned the U.S. sanctions on China in tandem with Nvidia chief Jensen Huang, citing the compromise of overall technological advances and impact on consumers and companies.
Haas discussed the repercussions of restricting access to technology in the ecosystem to Bloomberg last week at the Founders Forum Global conference in Oxford.
Haas said Chinese competitors have evolved, citing Huawei Tech as an example. The Trump administration blacklisted Huawei in 2019, citing national security threats.
In April, the Trump administration imposed sanctions on exports of data center processors to Chinese customers, which cost Nvidia about $8 billion in Chinese revenue during its second fiscal quarter.
Price Action: NVDA stock traded lower by 1.03% to $144 at the last check Friday. AVGO is down 1.05%. ARM is down 0.80%.
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