Tesla's Shift to Silicon Causes European Chipmakers' Stocks to Drop

European chipmakers' stocks fall after Tesla warns of a decrease in silicon carbide usage.

European chipmakers such as Infineon, STMicroelectronics, and ASM International experience a decline in their stock prices following Tesla's announcement.

Tesla stated that it would be shifting its focus towards using silicon instead of silicon carbide in some of its components, which may impact chipmakers that produce silicon carbide-based chips.

Infineon, one of the largest suppliers of silicon carbide chips, saw its stock price drop by over 4%.

STMicroelectronics, which also produces silicon carbide-based chips, experienced a 2% drop in its stock price.

ASM International, which is involved in the production of semiconductor equipment, saw its stock price decline by more than 5%.

Silicon carbide is a popular material used in the production of electric vehicles due to its high conductivity and durability.

Analysts believe that Tesla's shift towards silicon may have a negative impact on the sales and profitability of chipmakers who produce silicon carbide-based chips.