SK Hynix Plunges 13%, TSMC Drops by NT$70! Asian Semiconductor Stocks Collapse Collectively; Foreign Media Warns: Chip Sell-Off Intensifies

Asian semiconductor stocks declined sharply today (28th), with South Korea's SK Hynix and Samsung Electronics both falling over 10% during trading. Japan's Tokyo Electron, Advantest, and Kioxia also faced heavy selling pressure. Taiwan Semiconductor Manufacturing Company (TSMC, 2330) hit a low of NT$2,270 during the session, closing at NT$2,280—a drop of NT$70, or 2.98%, breaching the key NT$2,300 level. This marked the sixth-largest single-day decline in its history.

Has the long-term trend in semiconductors changed?

According to CNBC, U.S. semiconductor stocks weakened on Monday ahead of the Asian sell-off. The VanEck Semiconductor ETF dropped over 2%, continuing Friday’s decline. AMD fell 5%, Teradyne dropped 4%, and Micron Technology declined about 2%, indicating a clear cooling in investor sentiment toward AI and the semiconductor sector.

The selling pressure spilled over into Asian markets: SK Hynix plunged over 13%, Samsung Electronics fell more than 12%, Samsung SDI dropped over 10%, LG Innotek tumbled nearly 18%, and LG Chem declined over 6%. In Japan, Tokyo Electron fell nearly 11%, Advantest dropped over 10%, and Kioxia plunged more than 18%. SoftBank Group, which holds shares in Arm and is seen as an AI investment bellwether, also fell 6.3%.

AI Investment Uncertainty Hits Memory Giants First

SK Hynix and Samsung Electronics are the world’s leading suppliers of High Bandwidth Memory (HBM), a key component in AI servers. Their stock prices are highly sensitive to expectations around capital spending by major U.S. cloud providers. As concerns grow over the pace of AI investment, peak memory prices, and supply competition, these two companies have become prime targets for investor profit-taking.

Owen Lamont, Senior Vice President at Acadian Asset Management, told CNBC that the market is facing significant uncertainty: “No one knows how AI’s progress will ultimately affect the economy,” suggesting continued volatility ahead. He also noted that leveraged ETFs in South Korea, Hong Kong, and the U.S. may be amplifying price swings.

China’s Semiconductor Push Adds Pressure, but Long-Term Demand Remains Strong

Sundeep Gantori, Head of Equity Investments at Standard Chartered, analyzed that recent reports of China’s aggressive development of memory chips and lithography equipment have further dampened market sentiment. Additionally, some brokerages predict memory prices could peak as early as 2027, prompting investors to lock in profits early.

However, Gantori believes the long-term AI investment trend remains intact, with the market large enough to support multiple players. Standard Chartered also expects memory prices to peak next year, but notes that after this correction, the risk-reward profile of related stocks has improved. In the short term, investors will closely watch capital spending by U.S. tech giants, demand for AI servers, and any reversal signals in memory pricing.

More exclusive Wind Media insights: · YMTC isn’t cheaper! Apple’s Cook lobbied Trump to allow Chinese memory imports—South Korean think tank mocked: “Apple just wants to lower prices” · NVIDIA heavily invests in Naver and SK! Jensen Huang backs South Korea’s semiconductor and AI future, securing HBM capacity early · Lee Jae-myung visits Silicon Valley for “chip diplomacy”—brings Samsung and SK executives to expand South Korea’s global influence in AI and semiconductors