What Happened?
Shares of semiconductor maker Himax Technologies (NASDAQ: HIMX) fell 6.4% in the afternoon session after the U.S. government announced significant protectionist measures targeting the foreign semiconductor industry.
The move was driven by two key developments. First, President Trump introduced a 100% tariff on all foreign-made semiconductors, a policy aimed at boosting domestic manufacturing by making imported chips more expensive. Second, the Department of Commerce closed a loophole that previously allowed some foreign companies to export semiconductor manufacturing equipment and technology to China without a license. These companies will now face the same licensing requirements as their competitors. For a foreign chip designer like Himax, these new tariffs and export restrictions create significant headwinds, potentially impacting its sales and operations in the U.S. and China.
The shares closed the day at $8.16, down 5.7% from previous close.
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What Is The Market Telling Us
Himax’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 5.5% on the news that the stock joined a broad rally among semiconductor companies following remarks from Federal Reserve Chair Jerome Powell that sparked hopes for interest rate cuts. The positive sentiment spread across the chip sector after Powell's speech at the Jackson Hole symposium. Further momentum came from the Chinese stock market, where the semiconductor sector was among the leading gainers, with some indices hitting multi-year highs. This market-driven upswing marks a reversal for Himax, which saw its stock drop in pre-market trading the previous day after reporting mixed Q2 2025 earnings results. The current rally appears to be driven by these broader macroeconomic tailwinds rather than recent company-specific performance.
Himax is up 7.6% since the beginning of the year, but at $8.05 per share, it is still trading 37.4% below its 52-week high of $12.85 from January 2025. Investors who bought $1,000 worth of Himax’s shares 5 years ago would now be looking at an investment worth $2,141.
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