BUZZ-European semis dragged by Texas Instruments' weaker quarterly results

Reuters
Oct 22
BUZZ-European semis dragged by Texas Instruments' weaker quarterly results

** European semiconductors and material suppliers fall after Texas Instruments' TXN.O (TI) lower-than-expected quarterly results and forecast

** STOXX Europe Technology index .SX8P slides 0.8%, among the worst performers on the wider STOXX 600 .STOXX index, which is down 0.2%

** Citigroup says that TI kicked off results with a weaker than anticipated results and guidance, which reads cautiously for European players, especially STMicroelectronics STMPA.PA $(STM)$ and Infineon IFXGn.DE

** "The bigger issue we see is around gross margin, where Texas Instruments management called out the need to again moderate fab loadings to manage inventory," it says

** Siltronic WAFGn.DE, Aixtron AIXGn.DE, Infineon and ams OSRAM AMS.S are down between 1% and 3.8%

** BESI BESI.AS and STM fall 1.8% and 3%, respectively

** X-Fab XFAB.PA and Melexis MLXS.BR are down 2.3% and 2.6%, respectively

(Reporting by Ozan Ergenay and Samuel Indyk)

((ozan.ergenay@thomsonreuters.com)0))

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