Asian tech stocks surge as U.S.-Iran cease fire ease Hormuz disruption worries

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Xeon server chips shown to CNBC inside Intel’s advanced packaging facility in Chandler, Arizona, on November 17, 2025.

CNBC

Asian technology and semiconductor stocks surged on Wednesday after the U.S. and Iran agreed to a conditional two-week ceasefire that includes a temporary reopening of the Strait of Hormuz.

The news sent major indexes in Asian markets soaring, with chipmakers — which are highly sensitive to global trade flows and energy costs — leading the rally.

Taiwan Semiconductor Manufacturing Company, the world’s largest contract chip manufacturer, was up 4.84%. China’s leading contract chip manufacturer, Semiconductor Manufacturing International, jumped more than 10%.

Japanese semiconductor equipment maker Tokyo Electron climbed 9.6%. Advantest jumped over 13%, while Renesas Electronics, a key Nvidia supplier, added 12%. Electrical equipment company Fujikura rose 11.58%.

South Korean memory chip leader SK Hynix surged more than 15%, while Samsung Electronics advanced more than 9%. Samsung’s gains came as the company also forecast an eightfold jump in first-quarter profit on Tuesday, driven by surging AI demand for its high-bandwidth memory chips used in data centers and servers.

While continued strong demand from the AI boom has seen major chipmakers’ profits soar this year, the conflict in the Middle East has raised serious concerns about their global supply chains, particularly helium.

In semiconductor manufacturing, helium’s cooling properties are used to transfer heat, with the gas also indispensable in photolithography, a technique used to print each chip’s intricate circuitry.

Iranian attacks on industrial sites in Qatar, which produce about 30% of the world’s helium, and the closure of the vital shipping route of the Strait of Hormuz have severely strained helium supplies in recent weeks.

Analysts warned that a prolonged conflict could eventually lead to production delays for chipmakers as helium stockpiles deplete.

The ceasefire, announced late Tuesday in the U.S., while temporary, has raised market hopes that the conflict will normalize and ease shipments through the Strait of Hormuz.

The announcement follows weeks of heightened tensions, with U.S. President Donald Trump threatening strikes on Iranian infrastructure unless Tehran reopened the Strait of Hormuz, which accounts for roughly one-fifth of global oil shipments.

Oil prices plunged on the news, which could also relieve potential inflation pressures on margins across the semiconductor industry.

U.S. stock futures also rose in Asian trading hours, signaling a stronger open for Wall Street.

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