Infineon Technologies has emerged as one of the worst performers in the DAX, with its shares shedding 17% over the past week.
The decline marks a significant deterioration in investor sentiment toward the German chipmaker, which has now lost nearly 40% of its value since hitting record highs in early June.
The sell-off is not isolated to Infineon.
Global semiconductor equities are facing intense pressure, with the Philadelphia Semiconductor Index posting notable losses.
Market participants are repricing the sector amid growing concerns about the competitive landscape and demand visibility, particularly regarding exposure to the Chinese market.
Handelsblatt reports that news from China is a primary driver of the weakness, highlighting the vulnerability of European tech firms to geopolitical and economic shifts in the region.