South Korea’s Kospi plunged 7.4% as Samsung Electronics and SK Hynix shares slumped amid concerns over China’s CXMT challenging established memory-chip leaders and uncertainty surrounding the AI boom.
South Korea’s Kospi index plunged 7.4% as Samsung Electronics and SK Hynix shares tumbled amid concerns over China’s CXMT gaining ground in the memory-chip market and uncertainty surrounding the AI boom.
The Kospi fell to 5,914.35 on 13 October, its lowest level since late July, after reaching an all-time high above 9,000 in June, fuelled by enthusiasm for artificial intelligence (AI).
Samsung Electronics shares dropped 7.7%, while SK Hynix plunged 8.8%. Reports of advances by Chinese memory-chip maker CXMT raised concerns that it could increasingly challenge established leaders Samsung, SK Hynix and Micron Technology.
The sell-off extended across Asian semiconductor stocks. Japan’s Tokyo Electron, a chip-equipment maker, fell 6.6%, while Taiwan Semiconductor Manufacturing Co. (TSMC) declined 1.6%. Japan’s Nikkei 225 dropped 2.5%, and Taiwan’s Taiex fell 1.9%.
US semiconductor stocks also closed lower on Monday, with Micron Technology down 3.9%, Advanced Micro Devices (AMD) losing 2.3%, Nvidia falling 1.3% and Broadcom declining 1.9%.
The declines reflect investor concerns about the sustainability of AI-driven growth expectations and intensifying competition in the memory-chip market. However, the report does not quantify CXMT’s potential market-share gains or establish that its advances alone caused the sell-off.
