A sharp selloff in the global semiconductor trade has intensified, with selling pressure spreading from US equities to Latin American markets.
The VanEck Semiconductor ETF (SMH) fell 5.4% in the session, while Samsung Electronics shares dropped 7%, marking a significant reversal for a sector that had more than doubled in value since hitting recent lows.
The decline follows heavy selling pressure on US semiconductor equities, which extended losses that began in Asian trading sessions.
The move represents a break in the semiconductor trade that had pressured Latin American markets for two consecutive days, signaling that the repricing is no longer confined to US-listed names.
The Rio Times reports that the selloff is being driven by a short-seller campaign, describing the event as a "global chip tremor" with implications for Latin America.
This attribution suggests the decline is not solely a valuation correction but potentially a targeted attack on specific names or the sector broadly, adding a layer of uncertainty to the price action.