Chip Stocks Sink, Hit by China Competition and AI Spending Fears

Global semiconductor stocks fell sharply following a massive sell-off in Asia. Samsung Electronics plummeted over 13%, while SK Hynix shares dropped more than 14%. The downturn spread to U.S. pre-market trading, where Micron Technology fell over 5%. Both AMD and Intel declined more than 4% before the opening bell.

Intensifying competition from China triggered the sell-off. The successful debut of DRAM manufacturer ChangXin Technology forced a reassessment of the global memory market. Additionally, reports show Chinese firms are advancing mass production of domestic lithography equipment. These developments threaten the long-term market share of U.S. and European firms.

Broader investor anxiety regarding AI infrastructure spending also fueled the decline. Markets are questioning whether massive capital expenditures can generate timely profits. This skepticism has triggered a valuation re-evaluation across the entire semiconductor ecosystem.