Semiconductors stocks took a hit on Tuesday as House Speaker Nancy Pelosi's visit to Taiwan sparked fresh tensions between Washington and Beijing. The Chinese government openly opposed this trip as its sends encouraging signals to the pro-independence part of Taiwan, which is an important exporter of computer chips.
The largest contract manufacturer of semiconductors in the world has its headquarters on the island namely Taiwan Semiconductor Manufacturing Co Ltd (TSM.US), similar to other key players like United Microelectronics Corp (UMC.US). Shares of both firms dropped 2.4% and 3%, respectively. On the other hand, their US competitors namely Nvidia (NVDA.US) Corp, Qualcomm (QCOM.US) and Micron Technology Inc (MU.US) erased early losses and are currently trading higher.
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Taiwan Semiconductor Manufacturing Co Ltd (TSM.US) stock fell nearly 50.0% from it's all-time high, however sellers managed to halt declines around the support zone at $76.00. As long as price sits above, another upward impulse may be launched, however a lot will depend on the geopolitical picture. Source: xStation5
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