European chip stocks recoup losses despite Trump's call to axe U.S. subsidy law

AIXTRON SE

05/03/2025 12:05

** European chip manufacturers recoup losses despite U.S. President Donald Trump saying on Tuesday U.S. lawmakers should dismantle the $52.7 billion semiconductor chips subsidy law

** Shares of Siltronic WAFGn.DE, Aixtron AIXGn.DE, Infineon IFXGn.DE, STMicroelectronics STMPA.PA jump between 6% and 10% at 1131 GMT after Tuesday's selloff

** Investors have considered that 85% of the CHIPS Act money is already allocated under binding agreements, says Redburn Atlantic analyst Timm Schulze-Melander

** "This means it cannot be legally cancelled," he adds

** European computer chip equipment makers, direct suppliers of Taiwan's TSMC 2330.TW, also rise, with ASML ASML.AS, ASMI ASMI.AS, and BE Semiconductor Industries BESI.AS all up around 3%

** "This program supports significant infrastructure build plans including Intel Ohio and TSMC Arizona fabs," Schulze-Melander adds

** TSMC announced on Tuesday a $100 billion investment plan to build five additional chip facilities in the U.S.

 (Reporting by Nathan Vifflin)

 ((nathan.vifflin@thomsonreuters.com; +48 58 769 67 13;))