Siltronic profit warning knocks European chipmakers

LONDON (Reuters) - European chipmakers fell sharply on Wednesday after German silicon wafer maker Siltronic warned of a “significantly” weaker second quarter, the latest setback for the sector reeling from slowing smart phone demand.

Siltronic shares fell nearly 9 percent to the bottom of the STOXX 600 and were down 7.9 percent at 1303 GMT, dragging other European semiconductor makers with it.

Infineon was down 0.5 percent at the bottom of Germany’s DAX 30 while AMS was down 2.7 percent and Dialog Semiconductor dropped 1.4 percent.

The euro-zone technology sector fell into negative territory on the news, and was down 0.2 percent.

Reporting by Thyagaraju Adinarayan; editing by Josephine Mason