Samsung Electronics and Kioxia Holdings suffered heavy losses in Asian trading on Monday, with Samsung shares falling 13% and Kioxia dropping more than 18%.
The steep declines reflect growing investor anxiety over the sustainability of artificial intelligence capital expenditure and the competitive pressure from Chinese chipmakers.
The sell-off extends a broader weakness in the technology sector, which has been under pressure following a losing session on Wall Street.
Asian tech equities had already retreated sharply on Friday, driven by concerns that escalating memory chip costs are forcing manufacturers to raise prices, potentially dampening consumer demand for electronics.
Market participants are increasingly scrutinizing the balance between AI-driven demand and the risk of overcapacity, particularly as Chinese competitors gain ground in the memory market.
The volatility underscores the sensitivity of semiconductor valuations to shifts in sentiment regarding both end-market demand and geopolitical supply chain dynamics.