U.S. AI Chip Export Restrictions Cause Turmoil in Asian Markets: Korean Stocks Plummet, Nikkei Drops, Gold ETFs Hit Record Highs

Taiwan • Business • 04/16 10:54
U.S. AI Chip Export Restrictions Cause Turmoil in Asian Markets: Korean Stocks Plummet, Nikkei Drops, Gold ETFs Hit Record Highs

The U.S. government has imposed export controls on AI chips like Nvidia H20 to China, causing fluctuations in the Asian market. South Korea's KOSPI index fell by 1.21%, with stock prices of Samsung Electronics and SK Hynix dropping; Japanese semiconductor stocks plummeted, and the Nikkei 225 index fell by 347 points. The Japanese yen appreciated by 0.59% against the U.S. dollar, and gold ETFs reached their second-highest price ever due to increased demand for safe-haven assets. South Korea and the U.S. are set to begin trade tariff negotiations, with South Korea considering increasing imports from the U.S. and boosting production within the U.S. to reduce its trade surplus.

Key Updates

04/16 15:48

TSMC's earnings call presents a positive outlook, while ASML's orders drop by 45%, leading to uncertainty in the semiconductor market.

TSMC will hold an investor conference on April 17, with the market's attention on its operational outlook for 2025. Despite geopolitical and tariff pressures, TSMC's first-quarter revenue increased by 42% compared to the same period last year, with a gross margin of 57.3%. At the same time, ASML saw a 45% drop in new orders in the first quarter, indicating a conservative approach to equipment investment. In anticipation of potential U.S. tariffs, several major tech companies have increased their orders with TSMC ahead of time. Taiwan's equipment spending has dropped by 16%, reflecting a slowdown in investments for new capacity.

04/16 14:51

China Import and Export Fair Opens: Chinese Exporters Seek New Markets Amid Pressure from 145% US Tariffs

On April 15, 2025, the 137th Canton Fair opened in Guangzhou, facing the challenge of a 145% tariff imposed by the United States on Chinese products. Chinese exporters stated they are facing a survival crisis, with some companies halting shipments to the U.S., while others are shifting focus to Southeast Asian and European markets. Despite the bustling crowds at the exhibition, the tariff pressure has already altered the strategies of foreign trade companies. Local governments and trade platforms are offering support, and some companies are contemplating relocating production lines to Southeast Asia, but they are encountering new tariff challenges.

04/16 14:20

Singapore establishes an economic resilience task force to address the US-China tariff war; the President dissolves Parliament to initiate May elections; policies at the Hainan Free Trade Port aim to reduce business costs.

In April 2025, Singapore established the "Economic Resilience Taskforce" led by Deputy Prime Minister Lawrence Wong to tackle the effects of the US-China trade war. Meanwhile, Singapore's President Tharman dissolved Parliament on April 15, announcing a general election to be held on May 3. This is the first time Prime Minister Lawrence Wong is leading the People's Action Party in an election. Meanwhile, China's Hainan Free Trade Port is reducing corporate costs through tax incentives to attract businesses by focusing on changes in international trade.

04/16 12:50

US Tech Stocks Hit by Sell-off: NVIDIA, Apple, Tesla shares plummet

In April of 2025, the U.S. tech stock market experienced significant turmoil due to new U.S. restrictions on chip exports to China, high tariffs imposed by the Trump administration, and fears of an economic recession. Investor confidence was shaken, resulting in a massive outflow of funds. The stock prices of tech giants like NVIDIA, Apple, and Tesla plummeted, which dragged down the overall market. U.S. equity funds experienced a $6 billion outflow in a single month as funds shifted towards safe-haven assets such as gold. This event set off a chain reaction in global stock markets, causing simultaneous declines in Asian and European markets, and the three major U.S. indices suffered significant losses.

04/16 11:21

To avoid U.S. tariffs, Apple plans to air freight $2 billion worth of iPhones from India to the U.S. in March 2025, setting a new record for a single month.

In March of 2025, Apple Inc. airlifted nearly $2 billion worth of iPhones from India to the United States in response to the high tariff policy soon to be implemented by President Trump of the United States, setting a new monthly export record. Foxconn and Tata Electronics led this operation, using at least six cargo planes to transport about 600 tons, equivalent to 1.5 million iPhones, from Chennai Airport in India to multiple cities across the United States. This action highlights the flexibility of Apple's supply chain and underscores India's crucial role in its manufacturing network.

04/16 10:54

U.S. AI Chip Export Restrictions Cause Turmoil in Asian Markets: Korean Stocks Plummet, Nikkei Drops, Gold ETFs Hit Record Highs

The U.S. government has imposed export controls on AI chips like Nvidia H20 to China, causing fluctuations in the Asian market. South Korea's KOSPI index fell by 1.21%, with stock prices of Samsung Electronics and SK Hynix dropping; Japanese semiconductor stocks plummeted, and the Nikkei 225 index fell by 347 points. The Japanese yen appreciated by 0.59% against the U.S. dollar, and gold ETFs reached their second-highest price ever due to increased demand for safe-haven assets. South Korea and the U.S. are set to begin trade tariff negotiations, with South Korea considering increasing imports from the U.S. and boosting production within the U.S. to reduce its trade surplus.

04/16 10:54

Trump's economic policy is causing financial pressure for U.S. retirees: Experts recommend using savings cautiously

The Trump administration's reignition of the tariff war and push for tax reform has put financial strain on American retirees. On April 2, 2025, Trump announced new tariffs, leading to a sharp decline in the U.S. stock market, impacting 401(k) and IRA accounts. The ongoing tax reform could potentially reduce social welfare benefits, affecting low- and middle-income groups. Confidence in U.S. assets among global retirement funds is shaken, leading to divestment actions that intensify economic pressure. Experts recommend a steady approach to market fluctuations, avoiding panic-driven actions, and adopting a diversified asset allocation strategy to balance risks and returns.

04/16 03:20

China's Suspension of Receiving Boeing Aircraft Has Limited Impact: Taiwan's Aerospace Supply Chain is Viewed Favorably

In April 2025, the Chinese government ordered domestic airlines to suspend receiving Boeing aircraft and stop purchasing aircraft parts from American companies as a countermeasure against the 145% tariff imposed by the United States. Since the Chinese market accounts for only 2.06% of Boeing's orders, the impact is limited. Taiwanese aerospace supply chain companies such as Evergreen Aviation, Asia Pacific Aerospace, and Fengda Technology are gaining favor due to the recovery in global demand, as their stock prices rise, indicating market confidence in their growth potential.

04/16 02:52

NVIDIA expects to recognize a $5.5 billion expense in 2025 due to U.S. restrictions on H20 chips exports to China.

U.S. chip giant Nvidia is expected to recognize a $5.5 billion charge in the first quarter of fiscal year 2025 due to new U.S. government restrictions on exporting its H20 AI chips to China. The H20 chip was originally a downgraded version to comply with previous regulations, but it is still considered by the U.S. as potentially usable in China's supercomputer construction. This policy change has severely hit Nvidia's revenue expectations in China and triggered market turbulence, leading to its stock price dropping over 6% after hours.

04/16 01:18

The new U.S. tariff policy could lead to annual losses of over $1 billion for chip equipment manufacturers, affecting companies such as Applied Materials.

The new tariff policy drafted by the U.S. government could cause domestic semiconductor equipment manufacturers to lose more than $1 billion annually, as estimated in closed-door meetings with industry leaders and officials. Applied Materials, Lam Research, and KLA each anticipate losses of approximately $350 million, while mid-sized companies such as Onto Innovation are also expected to incur costs in the tens of millions of dollars. The losses include order cancellations, supply chain adjustments, and compliance costs, indicating the significant impact of the tariff policy on the high-tech manufacturing sector.

US AI Chip Export Controls Cause Market Turmoil

On April 15, 2025, the US Department of Commerce announced new export licensing regulations for AI chips such as Nvidia H20 and AMD MI308 being exported to China. This move aims to limit China's development in the field of artificial intelligence and prevent these chips from being used in high-end applications like supercomputers.

Nvidia stated that this policy will result in the company recognizing approximately $5.5 billion in expenses this quarter. Following the announcement, Nvidia's stock price fell about 6% in after-hours trading, triggering a chain reaction in the global semiconductor market.

South Korean Stock Market Falls 1.21%, Led by Semiconductor Stocks

Affected by US export controls, the South Korean stock market fell across the board on April 16. The KOSPI index closed down 1.21% at 2,447.43 points. Samsung Electronics' stock price fell by 3.36%, and SK Hynix by 3.65%. Foreign investors sold a net total of 207.679 billion won in Korean stocks that day.

Korean media pointed out that although the short-term impact on orders is limited, if the controls persist, it could change the market structure and affect the cooperation model between Korean companies and Nvidia. The high-bandwidth memory (HBM3) used in the H20 chips is mainly supplied by SK Hynix and Micron, while Samsung is vying for the HBM3E supply qualification. If the AI chip market shrinks, it could lead to a decline in HBM demand, affecting memory prices and factory utilization rates.

Japanese Semiconductor Stocks Plummet, Nikkei Index Drops 347 Points

The Japanese market was similarly impacted. On April 16, the Nikkei 225 index closed down 1.01%, dropping 347.14 points to 33,920.40 points, ending a two-day upward trend. The TOPIX index fell 0.61%, closing at 2,498.03 points.

Japanese semiconductor equipment stocks suffered significant losses. Testing equipment company Advantest plummeted 6.55%, wafer cutting machine manufacturer DISCO fell 8.0%, and film deposition equipment company KOKUSAI dropped 8.48%. Concerns are rising in the market that US export controls may expand to other chip equipment.

Yen Appreciates 0.59%, Gold ETF Hits Second-Highest Record

Increased risk aversion drove the yen higher. On April 16, the yen appreciated 0.59% against the dollar, trading at 142.33 yen to 1 dollar. This marks the yen's first rebound after four consecutive trading days of depreciation.

At the same time, gold, as a safe-haven asset, was in demand. Japan's "Mitsubishi UFJ Trust Gold ETF" rose 1.42%, closing at 14,285 yen, marking the second-highest closing price since the ETF's listing, second only to April 1's 14,315 yen. Spot gold prices also reached $3,230.16 per ounce during Asian trading, rising nearly $20 in one day.

South Korea and US to Begin Trade Tariff Negotiations

Amid the US's push for reciprocal tariff policies, the South Korean government is actively preparing to engage in trade negotiations with the US. The South Korean Ministry of Economy and Finance stated that Deputy Prime Minister Choi Sang-mok will visit Washington next week to meet with US Treasury Secretary Scott Bessent to discuss trade issues, including new import tariffs.

Additionally, South Korean Minister of Trade, Industry and Energy Ahn Deok-geun is also expected to visit the US next week to meet with US Secretary of Commerce Howard Lutnick and Trade Representative Jamison Greer. Both sides are coordinating the possibility of holding a "2+2" meeting, with finance and trade ministers attending together.

South Korea Considers Reducing Trade Surplus with US

In response to pressure from US tariffs, the South Korean government is drafting a multi-faceted plan aimed at reducing the trade surplus with the US. The plan includes expanding imports of natural gas, crude oil, agricultural products, and weapons from the US, while encouraging South Korean companies to expand local production of automobiles and semiconductors in the US.

South Korean officials stated that these measures aim to improve the balance of trade data between South Korea and the US and reduce the pressure from the US to impose a 25% reciprocal tariff on South Korea. The South Korean government also plans to make flexible use of the 90-day tariff grace period provided by the US to maximize national interests.

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