European chip stocks recoup losses despite Trump's call to axe U.S. subsidy law

European chip manufacturers recoup losses despite U.S. President Donald Trump saying on Tuesday U.S. lawmakers should dismantle the $52.7 billion semiconductor chips subsidy law

Shares of Siltronic WAFGn.DE, Aixtron AIXGn.DE, Infineon IFXGn.DE, STMicroelectronics STMPA.PA jump between 6% and 10% at 1131 GMT after Tuesday's selloff

Investors have considered that 85% of the CHIPS Act money is already allocated under binding agreements, says Redburn Atlantic analyst Timm Schulze-Melander

"This means it cannot be legally cancelled," he adds

European computer chip equipment makers, direct suppliers of Taiwan's TSMC 2330.TW, also rise, with ASML ASML.AS, ASMI ASMI.AS, and BE Semiconductor Industries BESI.AS all up around 3%

"This program supports significant infrastructure build plans including Intel Ohio and TSMC Arizona fabs," Schulze-Melander adds

TSMC announced on Tuesday a $100 billion investment plan to build five additional chip facilities in the U.S.