Chip Stocks Sink, Driven by China Competition and AI Profit Doubts

Global semiconductor stocks faced a sharp downturn following a massive sell-off in Asian markets. Samsung Electronics shares plummeted over 13%, while SK Hynix dropped more than 14%. In U.S. pre-market trading, Micron Technology fell over 5%. AMD and Intel both declined more than 4% before the opening bell.

The sell-off stems from intensifying competition from Chinese manufacturers. The debut of DRAM maker ChangXin Technology forced a reassessment of the global memory market. Additionally, reports show Chinese firms are advancing mass production of domestic lithography equipment. These advancements threaten the long-term market share of U.S. and European firms.

Broader anxiety regarding AI infrastructure spending also pressured valuations. Investors are questioning whether massive capital expenditures will generate timely profits. This skepticism has triggered a re-evaluation across the entire semiconductor ecosystem.