Summary · why it matters
European semiconductor stocks fell sharply on Friday, tracking steep overnight losses in U.S. chip names. By 09:15 GMT, Dutch chip-equipment maker ASML and ASM International each fell about 6%, while BE Semiconductor dropped 6.3%, Soitec lost 7.1%, Infineon fell 6%, Aixtron shed 7.4%, STMicroelectronics declined 7.6%, Siltronic dropped 7.2%, and AMS-Osram was down 10%. The declines followed a 4.3% drop in the Philadelphia SE Semiconductor Index on Thursday, which dragged the Nasdaq and S&P 500 lower despite upbeat U.S. economic data and a strong start to the second-quarter earnings season. The weakness came even as TSMC, the world's largest contract chipmaker, reported a 77% jump in quarterly profit, with its U.S.-listed shares still falling 2.3%, underscoring elevated expectations for a sector that has surged nearly 70% so far this year. Memory-chip makers were among the hardest hit in the U.S., with SanDisk, Western Digital, Seagate Technology, and Intel all falling between 5.8% and 12.6%.