South Korea's industrial production contracted in May, driven primarily by a reduction in semiconductor manufacturing volumes.
The decline reflects ongoing adjustments in chip production levels rather than a sudden demand shock, according to data reported by Yonhap.
The drop in output comes as Asian technology equities have extended their recent decline.
Investors are grappling with fresh concerns that escalating memory chip costs are forcing major manufacturers to raise prices, potentially dampening downstream demand.
The repricing pressure suggests a potential correction in the sector as margins come under scrutiny.
This development underscores the volatility facing the global semiconductor supply chain.