Asian equity markets opened sharply lower on Friday, with semiconductor names leading the decline as the region’s artificial intelligence-driven rally encountered severe headwinds.
Taiwan Semiconductor Manufacturing Company (TSMC) shares fell 7%, while Japanese flash memory specialist Kioxia Holdings plunged 16%, signaling deepening distress in the hardware supply chain.
South Korea’s benchmark Kospi index had already plummeted as much as 8% on Thursday, marking the sharpest single-day decline in the region’s AI trade to date.
The sell-off represents a continuation of the volatility that erupted earlier in the week.
South Korea’s benchmark Kospi index had already plummeted as much as 8% on Thursday, marking the sharpest single-day decline in the region’s AI trade to date.
The broad-based pressure suggests that investors are rapidly repricing the sustainability of the semiconductor boom, moving beyond isolated name risks to a sector-wide reassessment.
Kioxia’s steep drop is particularly notable given the company’s recent trajectory.