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Investing.com -- Shares of semiconductor companies focused on auto and industrial markets tumbled Monday after China launched two investigations targeting the US chip sector amid ongoing trade talks between the two countries in Madrid.
Texas Instruments (NASDAQ:TXN) stock fell 3.1%, while ON Semiconductor (NASDAQ:ON) dropped 2%, NXP Semiconductors (NASDAQ:NXPI) declined 3.5%, and Analog Devices (NASDAQ:ADI) shed 3%. Microchip Technology (NASDAQ:MCHP) also slipped 1.5%.
China’s Ministry of Commerce announced Saturday it had opened an anti-dumping probe into certain American-made analog IC chips. Texas Instruments, Analog Devices, Broadcom (NASDAQ:AVGO) and ON Semiconductor were specifically named on a list of companies that Jiangsu’s semiconductor industry association requested to be investigated.
Simultaneously, China initiated an anti-discrimination investigation targeting US moves against the Chinese chip sector. The probes come shortly after the US added 23 more China-based companies to its entity list, which imposes restrictions on businesses deemed to be "acting contrary to the national security or foreign policy interests of the US."
The timing is particularly significant as US Treasury Secretary Scott Bessent is set for discussions with Chinese Vice Premier He Lifeng in Madrid on trade, economic and national security issues.
Analog chips, which help digital systems interface with the real world by handling tasks like wireless signal amplification and power regulation, are essential components in smartphones, electric vehicles, and medical imaging devices. While they don’t require cutting-edge manufacturing processes, they remain critical across multiple industries.
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