Chip stocks whacked by China growth concerns

Silicon Motion Technology

22/01/2019 16:03

** The Philadelphia SE semiconductor index  .SOX  falls 2.3
pct as growing signs of weakness in China's economy added to
global growth worries 
    ** Latest data showed China's economy grew at its slowest
pace in 28-years in 2018  urn:newsml:reuters.com:*:nL3N1ZL2CH
    ** Chipmakers count on China for a huge chunk of their
revenue; all 30 members of SOX were in the red, with the index
falling after two days of gains
    ** Leading declines on the index was Micron Technology Inc
 MU.O , down 4.7 pct, followed by Lam Research Corp  LRCX.O ,
which lost 4.6 pct, ahead of its Q2 report on Wednesday
    ** U.S. chip earnings - a sector that has been hit by
concerns about semiconductor demand and China trade war - is in
focus this week
    ** Intel Corp  INTC.O  slips 1.4 pct ahead of its Q4 report
on Thursday, while Texas Instruments Incorp  TXN.O  shed 2.7 pct
with its qtrly report due on Weds
    ** SOX tumbled more than 15 pct in the final quarter of
2018, its biggest quarterly slide in seven years

 (Reporting by Medha Singh in Bengaluru)
 ((medha.singh@thomsonreuters.com))