Asian Chip Stocks Plunge as AI Rally Corrects on Wall Street

A major correction in US technology stocks sent shockwaves through Asian markets, battering key semiconductor companies.

South Korea's SK Hynix and Samsung Electronics each fell more than 12%. Japan's SoftBank plunged 15%. The Kospi index dropped sharply, triggering trading halts.

The selloff began with a steep decline in US chip stocks, led by Micron Technology. This unwinding followed a historic rally fueled by AI demand, which pushed valuations to levels that assumed near-perfect growth.

The downturn highlights a structural vulnerability. South Korea's market is heavily weighted toward Samsung and SK Hynix, meaning their declines directly impact the entire index.

Japan's Tokyo Electron and Advantest, key suppliers to the chip industry, also saw significant losses. The event serves as a valuation reset for a sector that had become overheated.