Asian chip shares slide as AI concerns weigh on markets

Asian technology and semiconductor shares fell sharply on Tuesday, October 13, as investors reassessed the outlook for artificial intelligence spending and competition from Chinese chipmakers. South Korea and Japan led regional losses, with declines extending across other Asian markets. A further sell-off followed on Thursday after U.S. inflation data, according to reported market readings. On Tuesday, South Korea’s Kospi dropped below 6,000 during the session, while Japan’s Nikkei 225 fell nearly 3% in early trading. Technology and chip companies were among the hardest hit. Samsung Electronics and SK Hynix declined in South Korea, while Japan’s Kioxia fell more than 12% in one reported reading. Taiwan’s Taiex also weakened as Taiwan Semiconductor Manufacturing shares dropped. Market reports linked the Tuesday selling to concerns over whether heavy investment in AI infrastructure will generate expected returns, as well as reports that Chinese chipmaker CXMT had advanced work on memory technology. Those were cited as explanations for market sentiment, not established causes of the declines.