TSMC and Samsung Electronics Hit by Major Slump in Chip Sales, TSMC Stock Price Drops 7%

[btarunr]

Stock prices of major semiconductor foundry companies such as TSMC and Samsung took a major beating on Monday. TSMC, Taiwan's premier foundry, sees its share prices drop by 7.1%, its lowest since Q1 2021. Samsung Electronics dropped by as much as 3.9%, and SK Hynix by 3.5%. Bloomberg reports that the selloffs in Asian markets may have been triggered by traders returning on Monday from a week's holiday reacting to fresh curbs on semiconductor sales to China by the Biden administration. The publication also remarks that global tech stocks have had their worst month since the October 2008.

"The latest U.S. move would prompt China to move faster in fostering the domestic chip industry," said Omdia analyst Akira Minamikawa. "Japanese firms should continue trading with Chinese firms with goods not restricted because the business is business. But they should be ready for a future--maybe in a decade or two--when they lose all the Chinese customers as a result of the current tension dialing up speed of the Chinese efforts."



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[Minus Infinity]

In response TSMC will urgently require another price increase to cover loss in revenue.

 

[mb194dc]

Chip / tech bust is well under way it seems. A lot of it is related to Covid and associated stimulus totally distorting demand, massive boom and now we get the bust.

 

[Deleted member 185088]

In response TSMC will urgently require another price increase to cover loss in revenue.

Probably, like most of the companies, another reason to not be blind faboy.
But given the current economic situation, I believe people will punish their greed.

 

[Dirt Chip]

Winter is coming...

 

[Valantar]

Great! Let's hope this means future price cuts in order to drive up sales.

 

[Vayra86]

The long awaited correction...

And soon, the reward for patience. It's coming, at last. Too bad we also have inflation, so the net cost of that new GPU is likely still too high

 

[hat]

I suspect that US-China politics aren't the only thing driving this slump. I'm pretty sure mostly everyone here can agree that Covid increased demand for chips. With worldwide lockdowns, millions of people were stuck at home without much to do... a lot of them likely turned to gaming. Whether it was PC or console, people worldwide were buying up electronics more than they ever normally would. In today's world, at least here in the US, we're now experiencing some pretty serious financial hardships. The economy is in the toilet. Wages aren't increasing, jobs aren't being added (anecdotal, but my company has been laying off a ton of people), and the prices of everything continue to increase. And by "everything" I don't mean graphics cards, I mean basic necessities like rent/mortgage, gas, utilities, food, clothing... the list goes on. It comes as no surprise to me that business is slowing down for semiconductor manufacturers after the Covid rush and the subsequent large scale economic downturn.

 

[Tsukiyomi91]

the amount of unsold GPUs on top of the upcoming release of RTX40xx is hurting their bottom line. Good. Let them suffer even more by deciding their fate with our wallets. (the physical kind, not those "decentralized" ones.)

 

[Dimitriman]

"TSMC stock price drops 7%"

I hear Palpetine in my head saying "Good.. Good..."

 

[bonehead123]

The market say: "But I am not afraid"

Consumer say: "hmmm....You will be...you WILL be !"

 

[stimpy88]

Greed finally starting to kick their asses, I hope!

 

[Sisyphus]

Cyclic business. Will be disproportionately affected by the recession. In "normal" recession, prices fall. When a recession meets a currency crisis/debt crisis, things get complicated.