ARM Holdings plc shares are experiencing a decline in pre-market trading on December 23, 2024, amid broader concerns in the semiconductor industry. The U.S. government has initiated a trade investigation into China's production of older types of computer chips, which are crucial for various industries, including automotive and military applications. This investigation could lead to tariffs or other measures to restrict Chinese chips from entering U.S. markets, potentially impacting global semiconductor supply chains.
The investigation highlights the growing tensions between the United States and China over semiconductor production, with the U.S. aiming to curb China's influence in the chip market. The Biden administration has previously imposed export controls to limit China's access to advanced chip technology, but this new probe focuses on legacy chips, which are still vital for many sectors. The potential for increased tariffs or trade barriers could disrupt the market dynamics, affecting companies like ARM Holdings that are part of the global semiconductor ecosystem.
ARM Holdings plc's stock is down 3.1% pre-market, trading at $128.05, compared to the previous close of $132.15.