Asian Tech Stocks Slide as U.S. Chip Sell-Off Hits SK Hynix, SoftBank

In South Korea, SK Hynix, a leading supplier of high-bandwidth memory chips used in AI applications, plunged more than 8%, while rival Samsung Electronics shed 6.7%. Both stocks hit their lowest levels since August.

In Japan, SoftBank Group, a technology-focused investment giant with significant exposure to the global AI industry, sank 8.8%, leading a broader retreat in Japanese semiconductor and electronics shares. Tokyo Electron, a major supplier of chipmaking equipment, dropped 6.75%. Advantest, which makes semiconductor testing equipment, declined 5.65%. Lasertec fell 4.94%, Disco lost 4.69%, and Renesas Electronics shed 5.64%.

The declines followed a weak session for technology stocks on Wall Street, where the Nasdaq Composite dropped 0.44% on Monday. U.S. memory chipmaker Micron Technology slid 3.9% as investors assessed intensifying competition from China's ChangXin Memory Technologies, or CXMT, which reported progress on a new chip structure.

The chief executives of Intel and Broadcom have warned that access to capital could emerge as a major headwind to the artificial intelligence boom, even as demand for computing infrastructure continues to outstrip supply.

Investors are also looking ahead to a busy week of corporate earnings and U.S. inflation data, which could provide fresh clues on the outlook for interest rates.