Global Chip Selloff Deepens as AI Worries, China Competition Spread to US, Europe

3-line summary

• The memory-chip selloff spread beyond Asia on Tuesday, with Micron down 2.3%, Marvell and SanDisk each down more than 2%, Western Digital down about 4%, and AMD and Broadcom each down about 1% in US pre-market trading, while European chip stocks also fell — STMicroelectronics and Technoprobe down 2.6%, ASM International down 2.4%, Aixtron down 1.9%, Siltronic down 1.4%, and Soitec, Infineon, ASML and BE Semiconductor each down more than 1%, according to Investing.com.
• The declines follow a deeper selloff in Asia, where SK Hynix fell about 10%, Samsung Electronics about 7.4%, and Japan's Kioxia up to 13.3%; SoftBank Group fell 8.5%, leading declines in Japan's chip and electronics sector. Micron fell 3.9% in New York trading the prior day. The selloff traces to China's CXMT announcing progress on a new chip architecture that increases memory density, stoking competition concerns, against a broader backdrop of worries over the sustainability of AI investment.

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