Amkor Technology shares fell sharply during a broad semiconductor industry sell-off. Reports indicated South Korean supplier SK Hynix will slow production expansion for next-generation high-bandwidth memory (HBM). SK Hynix provides critical HBM components for AI chips.
Investors initially feared the HBM slowdown signaled cooling demand for AI accelerators. Clarifying reports later revealed SK Hynix is reallocating capacity to conventional DRAM. Severe supply shortages in the DRAM market currently offer higher profit margins.
Amkor faced losses as a key provider of semiconductor packaging and testing services. Market sentiment declined due to perceived bottleneck risks in the AI supply chain. This uncertainty impacted investor confidence across the broader technology sector.