Sector Snap: Semiconductor stocks fall with market

Although there was little news from chip companies Wednesday, the Philadelphia Semiconductor Sector Index lost 10.65, or 2.7 percent, to 382.96 in afternoon trading. Every company on the 18-stock index traded lower.

Micron Technology Inc. shares posted the biggest loss on the index, sliding 44 cents, or 5.9 percent, to $6.99. Earlier in the day, Thomas Weisel Partners analysts released a report saying that prices for NAND memory--one of the key kinds of flash memory--are down 12 percent so far this month. For the year to date, prices are down 26 percent, they said.

"We believe the current spot market weakness results from a muted demand for consumer electronics and mobile phones," analyst Kevin Cassidy wrote to investors.

He added that he expects NAND prices to remain weak through the rest of June, but said prices could stabilize somewhat by the end of the third quarter.

Prices for DRAM flash memory remained flat last week for their fifth week in a row, he added.

Key Micron rival SanDisk Corp. fell 77 cents, or 3.3 percent, to $22.94, while American Depositary Shares of Germany-based memory chip maker Qimonda AG slid 18 cents, or 4.2 percent, to $4.14.

On the index, other notable decliners included chip testing equipment maker Teradyne Inc., which fell 54 cents, or 4.6 percent, to $11.11. Shares of Advanced Micro Devices Inc., the No. 2 microprocessor maker behind Intel Corp., lost 33 cents, or 4.3 percent, to $7.39.

Intel shares slid 22 cents to $22.36.

U.S.-listed shares ASM International NV rose 37 cents to $32.61 after the Dutch maker of chip equipment and materials was upgraded to "Buy" from "Hold" by Jefferies & Co. On Tuesday, ASM stock spiked 8 percent after the company said it received an offer by Applied Materials Inc. and Francisco Partners to buy all its front-end business units in a deal valued at up to $800 million.