Asian chipmaking stocks dip with TSMC, ASML earnings in focus

Investing.com-- Shares of major Asian chipmaking stocks fell on Wednesday amid some profit-taking as investors hunkered down before earnings reports from two key players in the industry- ASML and TSMC. 

Dutch lithographic equipment maker ASML Holding NV (AS:ASML) (NASDAQ:ASML)- the first of the two to report, clocked stronger-than-expected net bookings in the second quarter, as robust demand from the artificial intelligence industry saw increased demand for lithographic equipment.

Strong earnings from ASML bode well for the chipmaking industry. It, along with Taiwan's TSMC, are considered bellwethers for the industry.

TSMC (TW:2330) (NYSE:TSM)- the world’s biggest contract chipmaker, will report earnings on Thursday. Monthly data showed the company clocked a much higher-than-expected revenue in the second quarter, and is forecast to see a strong quarterly profit on sustained demand from AI. 

Chipmaking stocks in Japan, China and South Korea fell across the board, as investors awaited more cues on chip demand, especially from the artificial intelligence industry. 

The sector was also hit with some profit-taking after hype over AI drove a major melt-up in valuation over the past year. Sentiment was also soured by comments from U.S. Republican presidential candidate Donald Trump, who said that Taiwan should pay the U.S. for defense supplies. 

Any instability in Taiwan, which is a key part of the global chipmaking industry through TSMC, presents headwinds for the industry. TSMC fell about 2% in Taiwan trade. 

In Japan, Tokyo Electron Ltd. (TYO:8035)- the country’s most valuable chipmaker- slid 7.5%, while Advantest Corp. (TYO:6857) and Renesas Electronics Corp (TYO:6723) shed 2.5% and 1.3%, respectively. 

South Korean memory chip maker SK Hynix Inc (KS:000660) fell 4.3%, while peer Samsung Electronics Co Ltd (KS:005930) lost 0.8%.

In China, Semiconductor Manufacturing International Corp (HK:0981)- the country’s biggest chipmaker- fell about 1%.