A key index of chip manufacturers fell 7% in the session, marking a sharp reversal for a sector that had more than doubled its value since the lows triggered by the war.
The decline underscores growing investor caution regarding the sustainability of the artificial intelligence investment cycle.
Global equity markets extended their decline, with technology stocks bearing the brunt of the selling pressure.
The rout followed a losing session on Wall Street, where tech-heavy indices struggled to find support.
The broad-based weakness suggests that the market is repricing the risk associated with high capital expenditure in the AI sector.
The selloff comes as major technology firms face increasing scrutiny over their spending.