The US Chips Act: The next major headache for Asian tech investors
Asian technology companies account for a third of regional investment indices, but the ban on advanced chips is testing appetite for a sector already facing cyclical weakness and ongoing regulatory uncertainty.
MikeTyes
Asian technology companies account for a third of regional investment indices, but the ban on advanced chips is testing appetite for a sector already facing cyclical weakness and ongoing regulatory uncertainty.
December 06, 2022
In early October, the US Department of Commerce issued an update around the market’s export controls, announcing a ban across the sale of high-end semiconductor chips, tools and other components, to China. Citing concerns that the technology may be used for military purposes, the restrictions prevent US individuals from supporting chip development or production at Chinese facilities without first receiving an export licence exemption.
The announcement adds to the litany of headwinds faced by Asian technology companies who are already having to reevaluate their capital expenditure plans. Korea-listed SK Hynix, a semiconductor manufacturer that was granted a one-year waiver on the new ban, announced it would scale back production...
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