Despite a negative sentiment prevailing in the Thai stock market due to political uncertainties, the share prices of Thai electronics and microchip stocks saw a boost on Wednesday.
KCE Electronics Public Company Limited (SET: KCE) saw a 2.40% increase to THB42.75 per share, while Hana Microelectronics Public Company Limited (SET: HANA) rose by 2.33% to THB44.00 per share. Similarly, Delta Electronics (Thailand) Public Company Limited (SET: DELTA) recorded a 1% gain, reaching THB75.50 per share.
These gains followed reports of the Biden administration evaluating additional restrictions on China’s access to chip technology used for artificial intelligence (AI).
Conversely, the SET Index declined by 0.22% to 1,313.16 points, citing investors’ concerns over the central bank’s rate decision, political uncertainties, and upcoming U.S. inflation and interest rate announcements.
The uptick in Thai electronics and microchip stocks could be perceived as a positive signal, indicating potential opportunities for Thai producers to solidify their positions as alternative suppliers amidst uncertainties between China and the USA.
According to sources familiar with the matter, Bloomberg News reported that the proposed measures by the Biden Administration would potentially restrict China’s utilization of the advanced chip architecture known as gate all-around (GAA). GAA is a transistor architecture that enhances chip performance and decreases power consumption.
In an effort to limit Beijing’s access to cutting-edge AI chips, including those crafted by industry leader Nvidia, the United States has been strengthening trade restrictions. The concerns revolve around apprehensions that China could exploit the technology for military enhancement.
While the rule has not been finalized, initial feedback from industry insiders criticized the initial draft for being overly broad. It remains uncertain whether the prohibition would impede China’s development of its own GAA chips or target U.S. chip manufacturers and other foreign companies from supplying products to Chinese entities.
Furthermore, discussions have reportedly begun regarding potential restrictions on the export of high-bandwidth memory (HBM) chips.
