Asian chip stocks slide as China competition fears rattle AI trade
Investors also worried that rising Chinese chip capacity and circular financing could squeeze AI valuations, while the Kospi fell nearly 11%, Reuters said.
- On Tuesday, Asian markets fell sharply, led by a deep semiconductor rout as chipmakers faced intense selling pressure while oil prices extended recent declines.
- A report that China's Shanghai Yuliangsheng started mass-producing technology long dominated by Dutch firm ASML triggered the sell-off, challenging the industry's boom.
- South Korea's Kospi collapsed 10.2 percent and Japan's Nikkei slid 4.3 percent, dragging regional indexes lower as tech firms faced pressure following recent all-time highs.
- As the U.S. and Iran paused hostilities for a third day, Brent crude futures fell to $87.55 a barrel, easing geopolitical tensions despite market nervousness.
- Investors remain anxious about potential Federal Reserve rate hikes and AI funding sustainability as markets await earnings from tech titans Microsoft and Amazon.
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72 Articles
In South Korea, the slump in technology companies sent the entire stock market into a sharp decline. According to experts, expectations have sometimes been set too high.
The shares of leading chip manufacturers have been hyped in recent months. However, with the price gains it seems (for the time being) to be over. Also with one manufacturer from Austria there are price losses.
Japan and Korea are both crashing right now. How much of this crash will spill over into U.S. semiconductor markets? Some of that has already begun…
Japan and Korea are both crashing right now. How much of this crash will spill over into U.S. semiconductor markets? Some of that has already begun… https://t.co/7GJaR8Q9w7 — HealthRanger (@HealthRanger) July 28, 2026
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