Chip stocks slip as Taiwan tensions mount

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Semiconductor stocks fell globally on Tuesday as an expected visit by U.S. House of Representatives Speaker Nancy Pelosi to Taiwan fueled a fresh escalation in tensions between Washington and Beijing.

"The longer term impact is unlikely to be significant unless the situation escalates, which wouldn't be my expectation right now," said Andrea Cicione, head of strategy at TS Lombard in London.

Chinese warplanes were reportedly buzzing the line dividing the Taiwan Strait on Tuesday shortly before the expected arrival of Pelosi., a Chinese defense equipment manufacturer, jumped 20%.Reporting by Bansari Mayur Kamdar and Medha Singh in Bengaluru, additional reporting by Aniruddha Ghosh; Editing by Shinjini Ganguli

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