Semiconductor shares tumble as investors react to cheaper Chinese rivals and rising AI investment costs, dragging Asian tech indices lower.
Global semiconductor stocks fell sharply amid renewed worries over competition from Chinese chipmakers and escalating AI investment spending. The KOSPI plunged 10.11%, its steepest drop since early March, triggering circuit-breaker measures as SK Hynix and Samsung Electronics led declines with losses of 13% and 12%, respectively.
The Nikkei dropped 4.10% to its lowest level since May 22, with Kioxia Holdings down 18% and nearly 60% below its late June peak. Broader markets showed resilience, however, as most S&P 500 constituents closed higher despite the tech sector selloff.
In China, the CSI 300 and Shanghai Composite declined 2.12% and 0.90%, respectively, though CXMT Corp. surged 466% in its Shanghai debut following its IPO.