Semiconductor Equipment Stocks Could Be In For Rough Ride
Summary
A recent escalation of U.S.-China trade tensions could pressure semiconductor equipment stocks in the months ahead, just as chip gear makers are trying to get back on their feet. As the actions relate to China, they amount to renewed pressure by the Trump administration on the Chinese government, which is trying to develop its domestic semiconductor industry. Last year, the White House slapped export controls on companies doing business with Chinese telecom gear maker Huawei. The new export rules would most directly impact test-equipment maker Teradyne (TER) and lithography tool vendor ASML, Raymond James analyst Chris Caso said. Muse said President Donald Trump appears to be setting the stage to make China a central focus in the coming election in November.