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Geopolitical Tensions And Policies Impact Global Semiconductor Stocks

by THEFUTURE.TEAM

July 18, 2024

Recent geopolitical developments and policy decisions by former President Donald Trump and President Joe Biden have led to a significant decline in global semiconductor stocks. The Biden administration’s consideration of new export controls aimed at restricting the sale of critical chip-making equipment to China has particularly impacted industry giants such as ASML, Nvidia, and TSMC. These measures are part of broader efforts to curb China’s technological advancements and safeguard national security. In addition, Trump’s comments on Taiwan’s strategic importance in the semiconductor sector have further exacerbated market uncertainties.

Biden Administration’s Export Controls

The Biden administration’s potential sweeping restrictions on the export of advanced semiconductor manufacturing equipment to China have created significant ripples across the industry. Bloomberg reported that these controls could severely impact China’s ability to produce cutting-edge chips, a move seen as part of a strategic effort to maintain US technological superiority and protect national security interests. The impact of these policies is evident in the stock performance of key players in the semiconductor market. For instance, ASML, a leading supplier of photolithography machines essential for chip manufacturing, has seen a sharp decline in its stock value. Similar declines have been observed in other major firms like Tokyo Electron, which supplies critical equipment to semiconductor manufacturers globally.

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Trump’s Comments on Taiwan

Compounding these developments are recent comments from former President Donald Trump regarding Taiwan. Trump has underscored Taiwan’s pivotal role in the global semiconductor supply chain, given that it is home to TSMC, the world’s largest contract chipmaker. His remarks have heightened concerns over the geopolitical stability of the region and the security of the semiconductor supply chain. The potential for increased tensions between China and Taiwan, and the implications for global semiconductor production, have added to market volatility.

Market Reactions

The combined effect of these geopolitical and policy-related uncertainties has led to significant stock market reactions. Companies like Nvidia, which rely heavily on the global supply chain for semiconductors, have experienced marked declines in their stock prices. The broader semiconductor industry, which is already grappling with supply chain disruptions and fluctuating demand, faces additional pressures from these geopolitical dynamics. Investors are particularly wary of the long-term implications of restricted access to critical technologies and the potential for retaliatory measures from China.

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Industry Uproar Over Reduction in Electric Vehicle Subsidies

by News Editor

April 26, 2025

The recent move by the government to curtail subsidies for electric vehicles has stirred significant discontent among car importers in Cyprus. The Department of Road Transport (DRT) has slashed available grants under the Electric Vehicle Promotion Scheme as of April 23, leading to a rapid depletion of the subsidy pool and leaving many potential applicants disappointed.

Importers’ Concerns

According to the Cyprus Motor Vehicle Importers Association (CMVIA), the lack of transparency and failure to engage stakeholders prior to the decision have eroded trust in the government’s commitments. Importers now find themselves facing a precarious situation, with substantial stocks of electric vehicles and mounting promotional expenditures.

Public Interest and EU Compliance

Although the scheme aimed to support the transition to zero-emission transport until 2025, the DRT states that the curtailing of funds was necessary to comply with European funding terms, which warned against delays in vehicle deliveries. This decision has fueled market uncertainty despite the application portal experiencing dynamic changes.

Industry’s Ongoing Demand

The CMVIA refutes any claims suggesting waning interest in electric vehicles, underscoring the rapid exhaustion of available grants as proof of substantial demand. They highlight the importance of meeting Cyprus’s green transition targets, including putting 80,000 electric vehicles on roads by 2030.

While the total budget for subsidies saw an increase to €36.5 million in 2023, thanks to additional funding, ongoing difficulties in timely vehicle distribution have led to premature closures of applications. In response, CMVIA has called for urgent dialogue with the Minister of Transport to reassess the decision, fearing that it could endanger the future of e-mobility in Cyprus.