Asia’s AI chip rally cracks as Kioxia slides 16% and TSMC drops over 5%
AI Market Summary
South Korea's move to tighten single-stock leveraged ETF rules signals a policy push to curb speculative leverage in AI-linked equities, triggering a regional de-risking in chip names. The selloff hit recent high-flyers (Kioxia -16%) and pressured TSMC despite strong earnings, highlighting valuation sensitivity and reduced risk appetite. Weakness in SK Hynix's US-listed shares underscores potential cross-border spillovers via global semiconductor positioning.
Impact level
● Medium
Affected assets
NCSKSKHYNIX2USD/USDT+1.22%
AI Insight · NCSKSKHYNIX2USD/USDTAI Insight
▼ Bearish
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South Korean regulators said they will tighten trading rules for single-stock leveraged ETFs to curb excessive speculation in AI-related shares. The move helped spark a broad selloff in Asian chip stocks: Japan’s Kioxia fell 16% in a day and has halved since its June peak, erasing about 30 trillion yen, or roughly $185 billion, in market value. Taiwan Semiconductor Manufacturing Co. dropped over 5% even after reporting a 77% year-on-year profit surge, while Samsung Electronics and SK Hynix are down roughly one-third from their peaks this year; SK Hynix’s Nasdaq-listed ADR (ONUS) fell 14% on Thursday.
