South Korea’s Kospi tumbled 10.8% to close at 6,023.66 on July 28, marking one of the steepest single-day falls in recent years. The market’s sharp decline came after news broke that China had started mass producing deep ultraviolet (DUV) chipmaking equipment, sparking fears of heightened competition for South Korean semiconductor giants.
Shares of Samsung Electronics slid 13.4%, while SK Hynix, recently listed on the U.S. market, dropped 14.7%, closing below its IPO price at $143. The U.S.-listed shares’ dip highlighted investor unease amid the shifting landscape. Other South Korean tech firms tied to AI and semiconductors, like Samsung SDI and LG Innotek, also took heavy hits, with LG Innotek’s stock down over 16%.
Chinese chipmaker CXMT surged 466% on its Shanghai debut before trimming gains by 4%, underscoring China’s aggressive chip industry push. This momentum rattled not just South Korean stocks but also U.S. chipmakers like Nvidia and AMD, which faced declines partly driven by profit-taking in AI-related sectors after a recent rally.
Trading on the Kospi was halted multiple times as circuit breakers kicked in, triggered by the rapid sell-off. The sudden disruption underscored how vulnerable South Korea’s tech-heavy market has become to geopolitical and industrial shifts. Investors are now bracing for further volatility as China challenges established players.
This material is for informational purposes only and does not constitute financial advice.
