Semis slide after Huawei ban

|About: Micron Technology, Inc. (MU)|By:, SA News Editor

The Philadelphia Semiconductor Index is down 1.6% in early trading after the White House bans U.S. firms from using telecom gear from Huawei citing national security concerns.

The move means companies like Qualcomm (NASDAQ:QCOM-3.5% might have to apply for U.S. export licenses to continue supplying to Huawei.

The prior ban on ZTE sent semi stocks on a wild ride. Micron (NASDAQ:MU) -2.8%, Skyworks (NASDAQ:SWKS-4.5%, and Qorvo (NASDAQ:QRVO-6.1%.

Updated to add some Huawei exposure data from Mizuho. Note that Huawei is broadly a major Micron customer: Skyworks, 10%+ (customer); Qualcomm, 10% (customer); Qorvo, 10% to 15%+ (customer); Broadcom (AVGO -2%), less than 5% (customer); Xilinx, about 10% (exposure); Intel (INTC +0.3%), about 2% (exposure).

Semiconductor ETFs: SOXL, SOXX, SMH, USD, PSI, XSD, SOXS, SSG, FTXL, XTH

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