Nvidia, chip peers slide after U.S. strengthens restrictions on advanced semis

Shares of Nvidia (NVDA) and several other semiconductor makers are sliding after the U.S. Department of Commerce’s Bureau of Industry and Security, or BIS, released a package of rules designed to update export controls on advanced computing semiconductors and semiconductor manufacturing equipment, as well as items that support supercomputing applications and end-uses, to arms embargoed countries, including the PRC, and to place additional related entities in the PRC on the Entity List. “Today’s rules reinforce the October 7, 2022, controls to restrict the PRC’s ability to both purchase and manufacture certain high-end chips critical for military advantage. These updates are necessary to maintain the effectiveness of these controls, close loopholes, and ensure they remain durable,” the BIS stated. “Today’s updated rules will increase effectiveness of our controls and further shut off pathways to evade our restrictions. These controls maintain our clear focus on military applications and confront the threats to our national security posed by the PRC Government’s military-civil fusion strategy. As we implement these restrictions, we will keep working to protect our national security by restricting access to critical technologies, vigilantly enforcing our rules, while minimizing any unintended impact on trade flows,” added Secretary of Commerce Gina Raimondo. Other publicly traded companies in the chip making and equipment space include AMD (AMD), Intel (INTC), Marvell (MRVL), Microchip (MCHP), Micron (MU), Qualcomm (QCOM), Texas Instruments (TXN), ASML (ASML), Applied Materials (AMAT), Lam Research (LRCX) and KLA Corp. (KLAC).