Semiconductor stocks tied to the auto and industrial sectors fell sharply on Monday after China announced fresh investigations into the U.S. chip industry, coinciding with ongoing trade negotiations between Washington and Beijing in Madrid.
Texas Instruments (NASDAQ:TXN) dropped 3.1%, ON Semiconductor (NASDAQ:ON) lost 2%, NXP Semiconductors (NASDAQ:NXPI) declined 3.5%, and Analog Devices (NASDAQ:ADI) slipped 3%. Microchip Technology (NASDAQ:MCHP) also retreated by 1.5%.
The Chinese Ministry of Commerce revealed over the weekend that it had launched an anti-dumping inquiry into certain American-made analog integrated circuits. Companies highlighted by Jiangsu’s semiconductor industry association for closer scrutiny include Texas Instruments, Analog Devices, Broadcom (NASDAQ:AVGO), and ON Semiconductor.
In parallel, officials also opened an anti-discrimination investigation into U.S. actions against Chinese chipmakers. The moves follow Washington’s decision to place 23 more Chinese companies on its entity list, which restricts firms accused of being “contrary to the national security or foreign policy interests of the U.S.”
The probes come as U.S. Treasury Secretary Scott Bessent prepares to meet Chinese Vice Premier He Lifeng in Madrid for discussions covering trade, economic ties, and national security.
Analog semiconductors — crucial for functions such as signal amplification, power management, and wireless connectivity — play a vital role in industries from smartphones and electric vehicles to medical imaging. Despite not requiring the latest fabrication technologies, these chips remain indispensable to a wide range of modern applications.
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