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U.S. blacklisting of Huawei slams chip stocks

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U.S. blacklisting of Huawei slams chip stocks

U.S. blacklisting of Huawei slams chip stocks

Shares of U.S. and European chipmakers got hammered Monday amid worries the suppliers of Huawei Technologies may suspend shipments to the Chinese telecom giant.

Fred Katayama reports.

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U.S. blacklisting of Huawei slams chip stocks

The U.S. crackdown on China's Huawei Technologies unnerved investors Monday, sending tech stocks south.

The Nasdaq tumbled 1.75 percent minutes after the market open, and investors sold off shares of semiconductor suppliers, fearing those companies may suspend shipments to the Chinese telecom giant.

The U.S. last week added Huawei to a trade blacklist, making it very difficult for it to do business with its American counterparts.

In the U.S., shares of Qualcomm, Micron Technology, Broadcom, and Advanced Micro Devices fell between 4 and 6 percent minutes after the opening bell.

And the sell-off joined a global trend as investors dumped names that might get burned by the Huawei fallout.

In Europe, ST Microelectronics fell around 9 percent; Infineon Technologies dropped 5 percent.

And there were other looming fears: That Beijing might retaliate against an American tech firm.

Shares of Apple dropped sharply.

The stage for the tech sell-off was set when Reuters first reported over the weekend that Google would suspend some business with Huawei.

And Lumentum, a major supplier of Apple's facial-recognition software, said it would suspend all shipments to the Chinese firm.

Huawei was not immediately reachable for comment.

------------------- The U.S. crackdown on China's Huawei Technologies sizzled the circuits of nervous investors Monday, sending tech stocks south.

The Nasdaq tumbled 1.75 percent minutes after the market open, and investors sold off shares of semiconductor suppliers, fearing those companies may suspend shipments to the Chinese telecom giant.

In the U.S., shares of Qualcomm, Xilinx, Lumentum, Micron Technology, Broadcom, Skyworks Solutions and Advanced Micro Devices fell between 4 and 6 percent minutes after the opening bell.

In Europe, ST Microelectronics fell around 9 percent; Infineon Technologies dropped 5 percent.

Shares of Huawei's archrival in smartphones, Apple, also tumbled sharply.

Pressuring those stocks: moves by Google to suspend some business with Huawei and optical communications parts maker Lumentum Holding to halt all shipments to the Chinese telecom giant.

Infineon denied a report saying it had suspended deliveries to Huawei.

Huawei was not immediately reachable for comment.

This all comes after the Trump Administration placed Huawei on a trade blacklist on Thursday, intensifying the bitter U.S. trade war with China.

Bloomberg reported Sunday that Intel, Qualcomm, Xilinx, Broadcom and other chipmakers have told their staff they'll stop supplying critical software and parts to Huawei until further notice.

The chipmakers didn't immediately respond to requests for comment.




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