Chipmaker stocks fall on fears of Chinese retaliation against Huawei order

Integrated circuits on a circuit board. The semiconductor industry has been in focus during the U.S.-China trade war.

filonmar | E+ | Getty Images

Computer hardware and semiconductor stocks fell on Friday after the Trump administration blocked chip shipments to Huawei, the Chinese technology champion, raising fears that the Chinese government could retaliate and hurt American companies with additional restrictions.

Qualcomm fell over 5% and Intel was down 1.4% on Friday. Several smaller companies in the hardware industry also fell on Friday, including Micron (off 2.9%),  Lam Research (off more than 6%) and Qorvo (off more than 4%).

The drop reflects the uncertainty that stocks heavily reliant on the Chinese market face as the U.S. and China spar in the latest chapter of the trade war. Qualcomm is also currently in a patent licensing dispute with Huawei. 

On Thursday, the Trump administration moved to block shipments of semiconductors to  Huawei from chipmakers using U.S. software and technology. Huawei needs imported parts and software for its smartphones and telecom infrastructure products. 

In response, China is reportedly investigating striking back against American companies using the “unreliable entity list,” which would hurt U.S. companies such as Qualcomm, Cisco, and Apple, according to the state-run Global Times.

Apple was down less than 1% during trading on Friday. Cisco gained less than 1%.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *