ASML, a leading supplier of lithography machines for the semiconductor industry, experienced a significant drop in its stock price on Monday. This decline follows President Trump's announcement of potential tariffs on several NATO countries, including the Netherlands, which is home to ASML's headquarters. The report expresses concern that these tariffs could further impact the global semiconductor supply chain.
Stock Plummets Following Trump's Tariff Threat
The stock plummeted by 33% after Trump threatened to impose a 10% tariff on eight NATO nations, with the possibility of escalating to 25% by June 1 if these countries do not agree to a US acquisition of Greenland. This move has sparked fears of a trade war between the EU and the US, particularly impacting American chip manufacturers such as Intel and Micron, who heavily depend on ASML's advanced lithography machines, priced at up to $400 million each.
Impact on ASML and Semiconductor Supply Chain
Just days before this announcement, ASML's shares had reached record highs, buoyed by strong earnings reports from TSMC, a major customer. However, the sudden tariff threat has quickly reversed this positive momentum, raising concerns about the future of the semiconductor supply chain and the broader implications for international trade relations.
In contrast to the turmoil in the semiconductor sector, Ethereum's price has recently dropped to $3,200 after failing to break a key resistance level. For more details, see the full article here.
