Europe's chip stocks rally on auto and industrial recovery, China chip expansion

European semiconductor stocks are rising led by Soitec SOIT.PA and Melexis MLXS.BR that gain around 4% and 6%, respectively

Traders cite reports that Chinese chipmaker Cambricon 688256.SS plans to triple production capacity to replace Nvidia NVDA.O in China's AI market, boosting demand outlook for chip equipment and materials

Brokerage Equita says increasingly upbeat commentary from U.S. analog chip peers signals demand recovery, particularly in automotive and industrial segments

STMicroelectronics STMPA.PA rises 3.3%, as Equita says automotive and industrial recovery should lead its revenue to grow 13% in 2026

From Dutch semiconductor equipment makers, ASM International ASMI.AS gains 3%, BE Semiconductor BESI.AS adds 2% and ASML ASML.AS rises 1%

Chipmakers Infineon IFXGn.DE, Siltronic WAFGn.DE and Aixtron AIXGn.DE rise between 1.5% and 2.5%; ams-Osram AMS2.VI gains 2.5% and X-Fab XFAB.PA 2%