Foreign media said that the U.S. stock market closed lower on June 13, and investors were cautious before the upcoming U.S. Federal Reserve meeting. U.S. semiconductor giant Broadcom warned that global demand was generally slowing down put pressure on chip stocks.
According to Reuters recently reported that on June 13, the share price of Broadcom plummeted by about 5.6%. Previously, the company lowered its full-year revenue estimate by US$2 billion ($1 is approximately RMB 6.9) and attributed this to the export restrictions imposed by the United States on Huawei Technologies Co., Ltd.
Other US chip stocks also fell sharply. These companies outsource large-scale production to Chinese manufacturers and their products are also mainly sold to China.
reported that the Philadelphia chip stock index fell nearly 3%, and 29 of the 30 constituent stocks fell. The stock prices of other Huawei suppliers such as SJX and Corvo also fell.
"Just because of the export ban (to Huawei), we will see a very serious impact, and there is no obvious alternative option right now." Broadcom CEO said in a conference call with analysts after the results were announced and talked about the Huawei ban.
reported that Huawei accounted for 4% of the overall revenue of Broadcom last year, or about US$900 million.
The outside world has noticed that this is not the first time that US chip stocks have suffered a heavy drop in recent days.
Since Huawei was included in the "entity list" by the United States on May 15, anxiety has continued to spread, and US chip stocks suffered a sharp drop on May 20 and collectively fell. Qualcomm and Broadcom fell nearly 6%, Philadelphia Semiconductor Index fell more than 4%, Nvidia fell more than 3%, AMD and Lingyun Semiconductor fell nearly 3%. The S&P closed down 0.67%, while the Nasdaq Composite Index closed down 113.91 points, or 1.46%, to 7702.38 points.
chip industry is worsened by the pressure from the United States
Some analysts believe that it is not surprising that US chip stocks have suffered sharp drops one after another.
The US "" website of Wall Street Journal previously pointed out that the United States' sharp target of Huawei may accidentally hurt chip manufacturers, and said that the US Department of Commerce's announcement to include Huawei on the "entity list" is a major negative for American chip manufacturers.
Bloomberg observed that the "ban" ban on the sale of US technology to Huawei clearly shows how closely the global supply chain is related - it is almost impossible to avoid harming domestic companies in the process of putting pressure on Chinese customers and competitors. Some small U.S. chipmakers have said that the reduction in orders from Huawei and China will affect their revenues. Lumentum lowered expectations, and Corvo followed up with the same action. Analysts said the above trend may accelerate under the influence of Huawei being included in the "entity list".
Xinhua News Agency also reported that in fact, the global semiconductor market is not prosperous. As Huawei's suppliers, American chip manufacturers such as Qualcomm and Micro saw a significant decline in revenue in the fourth quarter of 2018. Industry analysts expect the industry growth rate may decline from double digits to single digits in 2019, and only the 5G and artificial intelligence markets are expected to be highlights. Against this backdrop, the US export control order undoubtedly makes the industry's development worse.
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