The concerns on a ramped-up trade war that have been stoked by the arrest of Huawei CEO Meng Wanzhou, as it threatens the highly China-exposed sector.
The Semiconductor index (SOXX) has taken a dive as the trade tension has turned up just days after some dovish tweets from the president suggested a brightening trade picture.
Real Money contributor Stephen Guilfoyle called the spate of bad news just after a change of tone "salt in the wound" for companies reliant on China, particularly Stock of the Day Micron Technology (MU) .
"As Tuesday brought about questions over just how successful the meeting in Argentina had been, the news of the arrest of Huawei CFO Sabrina Meng has poured salt into a wound not healed. "Micron appears extremely cheap, the Boise, Idaho-headquartered firm is reliant upon the Chinese economy for more than half of its revenue. Not a good time for a company in such a position."
That said, not all semiconductor companies are equally tied to the health of the Chinese market that has been a key driver in recent years.
Many have mitigated the risk not only on the supply side, but also enjoy diversified customer bases that avoid over-levering to the Chinese market.
If the trade war does in fact continue on the path that this morning's arrest suggests, investors may want to take notice of which companies are most intertwined with the regional risk.