Google's new compression algorithm puts extra pressure on European chipmakers

AIXTRON SE

26/03/2026 11:42

** Shares in European semiconductor companies fall after Google GOOGL.O revealed a new compression algorithm, TurboQuant, that it says helps AI systems use much less memory without hurting performance

** "I believe that on top of general market weakness, the Google comments ... (put) some extra pressure on the semi names,"  Marc Hesselink from ING says

** STOXX Europe Technology index .SX8P falls 2.2%, among the worst performers on the wider STOXX 600 .STOXX index, which is down 1%

** Hesselink adds it could, however, be positive for the wider market if memory supply-demand is a bit more balanced, given the constrained supply

** He doesn't see this impacting long-term memory investment plans

** ASML ASML.AS, AT & S ATSV.VI and Aixtron AIXGn.DE fall between 3% and 3.3%, while ams OSRAM AMS.S, Melexis MLXS.BR, Jenoptik JENGn.DE and Mersen CBLP.PA are down between 1.8% and 3%

** Siltronic WAFGn.DE ASMI ASMI.AS and Infineon IFXGn.DE are down 1.5%, 2.3% and 2.7%, respectively

(Reporting by Ozan Ergenay)

((ozan.ergenay@thomsonreuters.com))