Microchip Technology Raises Guidance, Boosting Market Sentiment; European Chip Giants Respond with Gains

Glonghui News, January 6th｜Citi Bank analysts wrote in a report that US semiconductor company Microchip Technology’s upward revision of its Q3 performance guidance is a positive signal for its European peers Infineon and STMicroelectronics. The analysts noted that while semiconductor supply has declined in recent months, Microchip Technology reported demand above average levels, which provides a clear positive outlook for European semiconductor companies. The analysts added that semiconductor companies are expected to rebound, with the latest quarterly revenues of European firms having the potential to exceed expectations and improve their 2026 performance outlook. As a result, Infineon’s share price rose by 3.95%, while STMicroelectronics gained around 2.5% in both the Milan and Paris markets.