Asian technology shares retreated Tuesday, dragged lower by a sell-off in U.S. semiconductors that highlighted growing concerns regarding artificial intelligence funding and mounting competitive pressures.
SK Hynix, a premier supplier of high-bandwidth memory chips critical for AI applications, saw its stock drop more than 8%. Competitor Samsung Electronics fell 6.7%, with both South Korean giants hitting their lowest valuations since August. In Japan, SoftBank Group declined 8.8%, weighed down by its substantial exposure to the global AI sector.
The downturn extended across Japanese semiconductor and electronics firms. Tokyo Electron, a key provider of chipmaking machinery, lost 6.75%, while Advantest, which produces semiconductor testing equipment, dropped 5.65%. Other notable declines included Lasertec at 4.94%, Disco at 4.69%, and Renesas Electronics at 5.64%.
The regional slump followed a disappointing session on Wall Street, where the Nasdaq Composite slipped 0.44%. U.S. memory chipmaker Micron Technology fell 3.9% as investors evaluated intensifying rivalry from China’s ChangXin Memory Technologies (CXMT), which recently announced advancements in its chip structure designs.
Investor caution is also fueled by warnings from the chief executives of Intel and Broadcom that access to capital could become a significant obstacle to the continued expansion of the AI industry, despite computing infrastructure demand continuing to outstrip supply.
Market participants are now looking toward a busy week featuring corporate earnings reports and U.S. inflation data, which may offer further insights into the future trajectory of interest rates.
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