Samsung Electronics shares are poised to drop amid increased competition and the possible loss of orders from Apple, BGC Partners said, recommending a so-called short sale of the stock.

Applied Materials and Varian Semiconductor Equipment Associates have announced the signing of a definitive merger agreement under which Applied will acquire Varian for US$63 per share in cash. The acquisition will extend Applied's leadership in wafer fabrication equipment with the addition of the technology leader in ion implantation.

Norway's Renewable Energy Corp posted forecast-beating earnings on Wednesday, but warned of waning demand, oversupply and price pressure as political uncertainty clouds key European solar markets.

"I don't think Samsung would ever want to be No. 2 in any market," said Catherine Morse, the general counsel and director of public affairs at Samsung Austin Semiconductor.

First Solar Inc.'s (FSLR) first-quarter earnings fell 33% because of lower sale prices, higher costs and a slowdown in Europe's solar market, prompting the U.S. solar-panel maker to aim for new markets.

Infineon's decision to exit the wireless business to focus on chips for cars and energy-efficient machines has paid off, as strong second-quarter results let the German chipmaker raise its full-year outlook.

"Based on a number of inputs, we believe Intel is also vying for Apple's foundry business," said Gus Richard, an analyst with Piper Jaffray & Co., in a new report.

Amkor's rise in revenues wasn't enough to offset an increase in expenses, and would have been higher had the company not taken a hit from the Japan disaster. Amkor operates a 211,000-square foot factory in Japan, one of the company's smallest facilities, according to regulatory filings.

Apple won the first round in a patent fight with Elan Microelectronics over touchpad technology, the ITC said on April 29.

MagnaChip Semiconductor has signed a wafer foundry agreement with Atmel, a major provider of microcontrollers and touch solutions.

STMicroelectronics, Europe's largest chipmaker, fell the most in six weeks in Milan trading after saying second-quarter sales will be held back by a decline at its joint venture with Ericsson. Dubbed ST- Ericsson, the venture is completing a shift to a new lineup targeting smartphone and tablet markets.