European chipmakers tumble after Broadcom dashes hopes of rebound in demand
Adds comment, tech stocks
LONDON, June 14 (Reuters) - European semiconductor stocks fell on Friday after U.S. chipmaker Broadcom AVGO.O warned a U.S.-China trade conflict and export restrictions on Huawei HWT.UL were causing a broad slowdown in demand for chips.
Shares in ASML ASML.AS, STMicroelectronics STM.MI, Siltronic WAFGn.DE, ASM International ASMI.AS, Infineon IFXGn.DE, and AMS AMS.S tumbled by 2.7% to 6.6% as the warning reignited fears chipmakers would not keep to their promises of a second-half recovery.
"It's 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," said a trader.
"Goodbye H2 recovery hopes!" he added.
The falls in chipmakers - which make components used in sensors for smartphones, cars, and medical equipment - drove Europe's tech sector index .SX8P down 1%, the worst-performing sector in Europe on Friday morning.
They followed an overnight fall in U.S. semiconductor stocks after California-based Broadcom's warning of a broad slowdown in chip demand.
The CEO of chipmaker Micron Technology MU.O also said the ban on Huawei brings uncertainty and disturbance to the semiconductor industry.
(Reporting by Helen Reid, Editing by Josephine Mason and Susan Fenton)
((Helen.Reid@thomsonreuters.com; +44 20 7542 0402;))
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