The Taiwan Semiconductor Manufacturing Company (TSMC) logo is seen as people attend the opening of the TSMC Global Research and Development Center in Hsinchu, Taiwan, July 28, 2023. Portal/Ann Wang/File Photo Acquire License Rights
TAIPEI, Sept 8 (Portal) – Shares in several major Apple suppliers (AAPL.O) fell on Friday after reports of expanding restrictions on iPhone use by state employees in China, raising fears over sales prospects for a US company stoked largest markets.
Employees in at least three Chinese ministries and government agencies have been told not to use iPhones at work, sources familiar with the matter told Portal.
Taiwan’s TSMC (2330.TW), the world’s largest custom chipmaker and a key Apple supplier, fell about 0.7%, bettering the benchmark index (.TWII) decline of about 0.3%.
Shares in ASE Technology Holding Co Ltd (3711.TW), one of the world’s largest semiconductor testing and packaging companies, fell more than 2%, while camera lens maker Largan Precision Co Ltd (3008.TW) fell more than 3% .
China may well expand restrictions on officials using iPhones, said Allen Huang, general manager of Taipei-based Mega International Investment Services Corp.
“In recent years, Chinese nationalism has caused problems and influenced policy guidelines,” he said.
Chinese handset maker Huawei Technologies’ new smartphones are also doing well, putting pressure on sales of the new iPhone 15, Huang added.
In China, Luxshare Precision Industry (002475.SZ), a maker of iPhone and MacBook connector cables and AirPods that also owns factories capable of making iPhones, fell 1.5%. The company’s shares were also hit by Huawei’s launch last week.
Japanese chip maker Tokyo Electron (8035.T) fell 4% on Friday.
Almost a fifth of Apple’s sales are made in China, where thousands of workers are employed by the company and its suppliers. During a visit to Beijing in March, CEO Tim Cook emphasized Apple’s long ties to the country.
Reporting by Ben Blanchard and Jeanny Kao; Additional reporting by Brenda Goh in Shanghai and Sam Nussey in Tokyo; Edited by Edmund Klamann and Clarence Fernandez
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