"Japanese Semiconductor Stocks Rise Four Times More Than US After Last Month's Export Controls to China"

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Bloomberg reported on the 1st that Japanese semiconductor-related stocks rose four times more than U.S. semiconductor companies last month due to the Biden administration's semiconductor export control measures targeting China.

According to the report, the Japan semiconductor-related stock index measured by Morgan Stanley Capital International (MSCI) rose 14% over the past month. This is the largest monthly increase in the past two years and is more than four times higher than the Philadelphia Semiconductor Index, which reflects the performance of U.S. semiconductor-related stocks. The company with the largest stock price increase was Lasertec, a manufacturer of extreme ultraviolet (EUV) lithography chip manufacturing test equipment, which rose 45% last month alone.

The Biden administration announced semiconductor export control measures against China in early last month. The U.S. plans to approve equipment imports on a case-by-case basis for overseas companies with production facilities in China. Following the announcement of the measures, U.S. semiconductor-related stocks plummeted last month.

Masahiro Wakasugi, a Bloomberg Intelligence analyst, explained that Japanese semiconductor companies were relatively less affected compared to U.S. companies, which is why Japanese semiconductor-related stocks rose. However, he also expressed concern that if Chinese semiconductor companies halt investments as major semiconductor companies have mentioned, the demand decline could be greater compared to U.S. companies.

This content was produced with the assistance of AI translation services.