Published in News

Chipmakers suffering during trade war

by on14 June 2019

No  second half recovery this year

US chipmaker Broadcom warned a US-China trade conflict and export restrictions on Huawei were causing a worldwide slowdown in demand for chips.

Shares in ASML, STMicroelectronics, Siltronic, ASM International, Infineon, and AMS tumbled by 2.7 percent as the warning reignited fears chipmakers would not keep to their promises of a second-half recovery.

One trader  told Reuters it was not just Huawei. "It’s deeper than that. Visibility is shot. OEMs [carmakers] aren’t ordering. Inventory concerns, which were supposed to ease, have not gone away... Goodbye H2 recovery hopes!”.

The falls in chipmakers - which make components used in sensors for smartphones, cars, and medical equipment - drove Europe’s tech sector index down one percent, the worst-performing sector in Europe on Friday morning.

They followed an overnight fall in US semiconductor stocks after California-based Broadcom’s warning of a broad slowdown in chip demand. Shares Broadcom fell more than  eight per cent after the company reported lower-than-expected revenue for the second quarter of its 2019 fiscal year, which ended on May 5, and cut its revenue guidance.

The CEO of chipmaker Micron Technology said the ban on Huawei brings uncertainty and disturbance to the semiconductor industry.

Last modified on 14 June 2019
Rate this item
(0 votes)

Read more about: