Global Tech Stocks Plummet! South Korean Market Crashes 11%, TSMC Slumps – Is the Semiconductor Boom Turning into a Bubble?

Reports of breakthroughs in China's semiconductor industry have deepened market concerns over whether the artificial intelligence (AI) boom can last. Amid the tech stock sell-off, major Asian stock markets faced renewed selling pressure today, with South Korea's market plunging nearly 11%.

According to AFP, the multi-year bull run in global tech stocks, which had driven multiple indices and company valuations to record highs, is now expanding into deeper losses amid this wave of selling. Technology website The Information reported that Shanghai-based Yuliangsheng Technology has begun mass-producing key chip manufacturing equipment long dominated by Dutch firm ASML. Following the news, semiconductor stocks became the hardest-hit sector.

SK Hynix plunged 14.7%, while Samsung Electronics dropped over 13%, dragging South Korea's KOSPI index down by 10.8%. The share prices of both companies have now retreated nearly 50% from their all-time highs last month, while the KOSPI index has fallen over 30%.

Japan's Nikkei 225 index dropped 4%. Kioxia's stock price tumbled over 18%, while Advantest and Tokyo Electron fell 10% and 11% respectively.

In Taipei, the market declined over 4% as heavyweight TSMC suffered significant losses. Stephen Innes, analyst at SPI Asset Management, stated: 'The fundamental outlook for the semiconductor industry remains intact—demand for high-bandwidth memory is still strong, capital expenditure plans from hyperscale cloud providers have not been withdrawn, and major tech firms continue to invest. What has changed is the market's willingness to price in expected profits at almost any cost.'

Most other Asian markets closed in negative territory, with declines in Shanghai, Singapore, Kuala Lumpur, Bangkok, Manila, and Jakarta. Only Hong Kong, Sydney, and Wellington ended the day in positive territory.