Semis ex-China rally on reports of U.S. blacklisting of SMIC

UMC Electronics

07/09/2020 12:24

** European and Asian (ex-China) semiconductor stocks rally
as they are likely to benefit if China's SMIC  0981.HK  is
banned by the Trump administration
    ** SMIC fell by over a fifth on a Reuters report that the 
U.S. might block American companies from providing
goods/services to China's largest chipmaker
    ** European chipmakers Infineon  IFXGn.DE , STMicro
 STM.PA , Dialog Semi  DLGS.DE , AMS  AMS.S  and ASM
International  ASMI.AS  are all rising 2-3% 
    ** In Asia, Samsung Electronics  005930.KS  rose 1.6% and
Japan's UMC  6615.T  closed 2.5% higher
    ** "...ripples through the supply chain as Samsung, UMC
among those seen benefitting," a London-based trader says
    ** As much as 50% of SMIC’s equipment is from the U.S., he
notes

 (Thyagaraju Adinarayan)
 ((thyagaraju.adinarayan@tr.com; Twitter @thyagu))