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FinanceSK Hynix plunges 10% in Seoul as semiconductor selloff deepens across Asia
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South Korean semiconductor shares tumbled on Tuesday, extending a rout in chipmakers after another weak session on Wall Street. SK Hynix plunged more than 10%, while Samsung Electronics fell over 8%. Other AI-linked names also came under heavy selling, with Samsung SDI dropping over 7%, LG Innotek sliding nearly 14%, Seoul Semiconductor falling about 6% and LG Chem losing more than 4%. Japan's semiconductor sector also traded lower, with Tokyo Electron dropping more than 9%, Advantest sliding over 8%, and SoftBank Group falling nearly 5%. Kioxia plunged more than 15%. The selloff followed another weak session for U.S. semiconductor stocks on Monday, with the VanEck Semiconductor ETF losing more than 2%. AMD and Teradyne dropped 5% and 4% respectively. The weakness underscores how closely Asian technology shares and the U.S. AI trade have become intertwined, as Samsung and SK Hynix are major suppliers of high-bandwidth memory chips used in AI servers.
Source report
SK Hynix Inc. signage at the company's office in Seongnam, South Korea, on Tuesday, June 30, 2026. SeongJoon Cho | Bloomberg | Getty Images
South Korean semiconductor shares tumbled on Tuesday, extending a rout in chipmakers after another weak session on Wall Street.
Key Declines in South Korea
- SK Hynix plunged more than 10%
- Samsung Electronics fell over 8%
- Samsung SDI dropped over 7%
- LG Innotek slid nearly 14%
- Seoul Semiconductor fell about 6%
- LG Chem lost more than 4%
Japan's Semiconductor Sector Also Hit
Japan's chip stocks also traded lower:
- Tokyo Electron dropped more than 9%
- Advantest slid over 8%
- SoftBank Group — a major AI investment proxy through its stake in Arm — fell nearly 5%
- Kioxia plunged more than 15%
U.S. Market Weakness Sparks Global Selloff
The selloff followed another weak session for U.S. semiconductor stocks on Monday. The VanEck Semiconductor ETF (SMH) lost more than 2%, adding to its Friday losses. AMD and Teradyne dropped 5% and 4%, respectively, to lead the declines. Micron Technology shed about 2%.
Intertwined AI Trade
The weakness underscores how closely Asian technology shares and the U.S. AI trade have become intertwined. Samsung Electronics and SK Hynix are among the world's largest suppliers of high-bandwidth memory chips used in AI servers, making their shares particularly sensitive to shifts in expectations for spending by U.S. hyperscalers.
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