AI Fears Send Asia’s Semiconductor Belt Into a Selloff
Asian financial markets were gripped by fears of a slowdown in U.S. artificial intelligence (AI) investment, triggering sharp declines across the region. In early trading on Nov. 6, benchmark indices in South Korea, Japan and Taiwan fell between 6% and 8%, sending shockwaves through East Asian equit
Asia's semiconductor belt experienced a significant sell-off on November 6, driven by fears of a slowdown in U.S. artificial intelligence (AI) investment. Benchmark indices in South Korea, Japan, and Taiwan fell between 6% and 8%, with Taiwan's Weighted Index recording the steepest decline at 9%. TSMC, the world's largest contract chipmaker, saw its shares tumble by as much as 10%, its largest single-day decline since April 2025.
The selloff was attributed to shifts in U.S. politics, growing uncertainty surrounding the AI industry, and concerns over potential regulatory changes on AI data center construction. The decline in semiconductor stocks could weaken demand for semiconductors, memory chips, and related equipment, impacting the broader market.
Brief written by urgent.news from BusinessKorea's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
