TSM - Intel leads semiconductors as sector sees increased political attention

2023-03-09 11:36:26 ET

Intel ( NASDAQ: INTC ) lead semiconductor stocks higher on Thursday as the sector saw increased attention from global politicians amid worries about the rise of China.

Intel ( INTC ) gained nearly 3.5% at mid-day, while competitors AMD ( AMD ) and Nvidia ( NVDA ) gained 1.7% and 0.1%, respectively.

On Thursday, U.S. Commerce Secretary Gina Raimondo said the U.S. and India would sign a memorandum of understanding to further coordinate and speak about policies relating to the sector.

Earlier this week, South Korea's trade minister Ahn Duk-geun expressed concerns over the U.S.'s $52B CHIPS Act, designed to make the domestic industry more competitive.

Semiconductor foundry stocks were mixed, as Taiwan Semiconductor ( TSM ) fell 0.5%, while Global Foundries ( GFS ) tacked on nearly 1%.

Late on Wednesday, the Netherlands' government said it would issue new restrictions on exporting semiconductor technology in the interest of national security.

Semiconductor equipment maker ASML Holdings ( NASDAQ: ASML ) was not specifically named by Dutch Trade Minister Liesje Schreinemacher, but the company's extreme ultraviolet, or EUV, machines used to print complex designs on chips have seen increased political scrutiny in recent months, including from the Biden Administration.

ASML ( ASML ) shares were slightly higher, while Lam Research ( LRCX ), Applied Materials ( AMAT ) and KLA Corp. ( KLAC ) saw gains of 1% or more.

A number of other chip stocks saw gains on Thursday, including NXP Semiconductors ( NXPI ), Texas Instruments ( TXN ), Micron Technology ( MU ) and ON Semiconductor ( ON ).

On Wednesday it was reported that Intel ( INTC ) was looking to get as much as $5.3B in subsidies from the German government for its upcoming plant in Magdeburg, down from a reported $10B last month .

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