TSMC outlook cut, US tech earnings send ripples through European semis

Osram Licht AG

20/07/2023 08:59

** European semiconductor stocks fall on Thursday after
Taiwanese chipmaker TSMC  2330.TW  forecast a drop in 2023 sales
as global economic woes dented demand for chips 
    ** The pan-European STOXX tech sub-index  .SX8P  falls
2.43%, its biggest one-day decline in three weeks, and is by far
the worst performing sector in Europe
    ** TSMC, the world's largest contract chipmaker, estimates
investment spending for this year at the lower end of a previous
guidance of $32-$36 billion
    ** Shares in ASML Holding  ASML.AS , ASM International
 AMI.AS , BESI  BESI.AS , Soitec  SOIT.PA , STMicroelectronics
 STMPA.PA , Infineon  IFXGn.DE , ams-Osram  AMS.VI  fall by
1.6%-5.9%    
    ** First results from heavy chip-users in U.S. also confirm
fears about the sector's Q2, with software provider IBM  IBM.N 
disappointing with lower-than-expected sales and Tesla  TSLA.O 
with a lower quarterly gross margin
    ** "(European chipmakers) have done incredibly well so
they're struggling to find more upside from here. There's just a
bit of caution coming in ahead of more tech earnings," Chris
Beauchamp, chief market analyst at IG Group, says
    ** "If we can see demand picking up from a lot of computer
makers that could give the sector a bit of lift," Beauchamp

 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))