Seoul, Tokyo Stocks Plunge as Asia Suffers Fresh Tech Rout
- On Monday, Chinese chipmaker ChangXin Memory Technologies claimed progress on a dense server memory design, triggering a sharp market selloff. Micron Technology and SK Hynix shares both fell 4%, erasing about $108 billion in combined value.
- The new design utilizes "4F square" stacked DRAM architecture, which CXMT says increases storage density. Both SK Hynix and Samsung Electronics have explored this same technology to fit more memory cells on chips.
- Micron Technology fell 4.5%, erasing about $52 billion, while SK Hynix lost about $41.5 billion in Seoul and Sandisk Corp. dropped 6.6%, or about $15 billion. The Roundhill Memory ETF fell 4%, showing the selloff hit the memory sector exclusively.
- While CXMT plans to release a server product later this year, skeptics warn memory is a boom-and-bust business. Optimists maintain CXMT tech still trails industry leaders "by two or three generations," noting "CXMT may be catching up, but it."
- Micron maintains a strong competitive position with an 87% adjusted gross margin last quarter, up from 45.7% a year earlier. Chief Executive Sanjay Mehrotra forecasts artificial intelligence demand exceeding supply through 2028, positioning the company for sustained growth.
34 Articles
34 Articles
China's CXMT Sparked a Global Chip Stock Rout. Why Samsung, Micron and SK Hynix Are Tumbling.
The company rattled investors with news of a technological advance that could allow it to produce more efficient memory chips capable of storing greater amounts of data in smaller spaces.
Chinese semiconductor company Changxin Memory (CXMT) announced on the 12th that it would launch next-generation memory products with significantly enhanced performance within the year. As concerns about China catching up in the semiconductor industry resurfaced, the stock prices of domestic and international semiconductor companies, including Samsung Electronics and SK Hynix, plummeted. The semiconductor super-boom brought about by artificial in…
China’s CXMT Claims Memory Breakthrough Ahead of Samsung, Hynix
CXMT Corp. declared it achieved a breakthrough in chip technology that rivals like Samsung Electronics Co. had pursued for years, an unsubstantiated claim that jolted stocks and reflects China’s aggressive push into a critical sphere.
Seoul, Tokyo stocks plunge as Asia suffers fresh tech rout
The selloff overshadowed a drop in oil prices that came even as Yemen's Houthis step up their attacks on Saudi Arabia, fanning tensions in the Middle East and raising further concerns about supplies. South Korea's Kospi tanked more than six percent as chip titans SK hynix and Samsung took a beating following reports that China's CXMT had made progress on new technology to boost memory density, which other firms have been working on. The firm was…
In Asia, the stock markets in Japan and South Korea went down. The triggers were price losses of semiconductor stocks in the US and concerns about rising US inflation.
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