From ASML to Micron: The Chipmaker Sell-off Spread Across Europe and Asia and Returned to the U.S.
All major chip manufacturers, as well as suppliers of equipment and materials for chip production, opened lower at the start of trading in Europe
Shares of European chip material suppliers fell the most after the market opened in Europe / Photo: Todamo/Shutterstock.com
Shares of chipmakers fell in Europe and Asia on Tuesday, October 13, following Monday’s decline on Wall Street, and the sell-off then spread back to the U.S., where the sector’s stocks dropped in premarket trading. Investors are concerned about the rising cost of financing AI and intensifying competition, including from Chinese memory chip maker ChangXin Memory Technologies (CXMT), according to CNBC.
Details
After the market opened in Europe, shares of semiconductor manufacturer STMicroelectronics briefly fell 5.8% by Monday’s close. Shares of German chipmaker Infineon dropped 5.5%. Shares of Dutch chip manufacturing equipment suppliers ASM International and BE Semiconductor fell by as much as 4.4% and 4.3%, respectively, during the trading session, while ASML shares fell by 3.5%. Later, all of them recovered some of their losses, but were unable to climb out of the red.
The stock prices of chip material suppliers were hit hardest. France's Soitec, which manufactures semiconductor wafers, briefly fell 6.3%, while German silicon wafer manufacturer Siltronic lost 5.6%.
Belgium’s Melexis and Germany’s Elmos Semiconductor, both of which develop automotive chips, fell 4.1% and 4%, respectively, at their intraday lows. Shares of ams-OSRAM, a manufacturer of optical sensors and LEDs, fell the least—by 3%—while those of Nordic Semiconductor, a Norwegian developer of wireless chips, fell by 2.9%. All of these companies are among the top ten in the STOXX Europe Total Market Semiconductors or STOXX Europe Total Market Technology indices.
In the U.S., ahead of the opening of the main trading session, shares of Micron, one of the largest memory chip manufacturers, are trading down 3%, and shares of chip designer Broadcom have also slipped into negative territory (–0.82%), according to CNBC. Shares of other U.S. players in the data storage market—flash memory manufacturer SanDisk and hard drive suppliers Seagate and Western Digital—fell by about 3%.
On the morning of October 13, chipmakers’ stocks also plummeted during Asian trading: specifically, Samsung shares closed the day down 7.39%, SK Hynix fell 10% in South Korea, and its shares are down about 4% in U.S. pre-market trading.
This article is being updated
This article was AI-translated and verified by a human editor
