US Trade Restrictions impact Tech Industry: ASML, TSMC, and Nvidia Relieved, Samsung and SK Hynix face uncertainty

Recent US trade restrictions targeting China have created a mixed response among tech companies. Initially, rumors of severe restrictions caused stock prices to plummet, particularly for companies like Nvidia and ASML. However, reports of exemptions for some countries and companies, including ASML, TSMC, and Nvidia, led to a market rebound. These companies are relieved as their chip manufacturing processes are less impacted.

On the other hand, the restrictions are expected to significantly affect memory chip producers like Samsung, SK Hynix, and Micron, particularly in the area of High Bandwidth Memory (HBM). Although the immediate market impact on these companies has been minimal due to high demand, concerns remain about potential long-term effects as the new regulations are implemented later this year.