Nvidia, Intel, Micron Stock Fall After China Calls Foul on Japanese Chip Restrictions
Japan was following the U.S. in preventing semiconductor manufacturing equipment from being sent to China.
Semiconductor makers slipped after China said it will respond if Japan doesn’t change new restrictions on chip exports to the world’s second-biggest economy.
China’s complaint raises the prospect of greater tension between the country and others in a simmering technology Cold War. Nvidia (ticker: NVDA) declined 1%. Intel (INTC) retreated 0.3%, Micron (MU) was down 0.4%, and Qualcomm (QCOM) lost 0.1%.
On Tuesday, China’s commerce ministry called on Japan to change its “wrong practice” after the country last week said it would restrict 23 kinds of semiconductor manufacturing equipment. Japan’s announcement was a step toward aligning itself with the U.S.
read more
“China will take decisive measures to safeguard its rights and interests if Japan insists on obstructing the chip industry cooperation between the two countries,” the ministry said in a statement.
The U.S. has implemented a string of measures to prevent the most advanced chips from being produced in China on concerns they could be used for military purposes, and the U.S. encouraged allies to take similar steps. China made a formal complaint about the chip restrictions to the World Trade Organization in December.
Write to Brian Swint at brian.swint@barrons.com