Specifically, the U.S. government is no longer allowing the export of semiconductors made with U.S. tech — at least, not unless vendors go through the effort to acquire an export license. The restrictions also keep U.S. workers from partnering with Chinese chip companies without explicit permission.
All of this is part of Washington’s efforts to keep China from obtaining new chip technology from the States. This comes as tensions between the U.S. and China continue to rise and the government seeks to keep modern semiconductors out of China’s hands.
How Will Chinese Chip Companies React?
Danni Hewson, an AJ Bell analyst, spoke with Reuters about the matter:
“The measures will hobble the Chinese chip sector and will scupper numerous growth plans and potentially set back innovation in both the East and the West […] There will be plenty of boardrooms hosting top level meetings over the next few days considering the implications of U.S. export controls.”
It makes sense that ACMR stock is falling on today’s news as it operates out of mainland China. Other Chinese stocks, such as JD.com (NASDAQ:JD), Bilibili (NASDAQ:BILI) and Alibaba (NYSE:BABA), are also falling on today’s news.
ACMR stock is down 26% as of Monday afternoon.
Investors seeking out the latest stock market news in are luck!
We’ve got all of that news ready to go in one place! For Monday, that includes why shares of Applied DNA (NASDAQ:APDN) stock, Top Ships (NASDAQ:TOPS) stock and scPharmaceuticals (NASDAQ:SCPH) are moving. You can find all of that at the following links!
More Monday Stock Market News
- Why Is Applied DNA (APDN) Stock Up 70% Today?
- TOPS Stock Is Up 10% After Shaking Off Delisting Fears
- Why Is scPharmaceuticals (SCPH) Stock in the Spotlight Today?
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.