Samsung and SK Hynix shares fall as CXMT chip plans and AI spending worries weigh

South Korean chip stocks led an Asian market slide on 13 October, as investors weighed a reported advance by Chinese rival CXMT and comments from Broadcom’s chief executive.

A 12-inch wafer carrying microelectronic testbeds.
File photograph of a 12-inch wafer of microelectronic testbeds, photographed in 2017. DrHughManning, "Semiconductor Wafer of Microelectronics.jpg" (resized and converted to WebP). CC BY-SA 4.0.Image sourceImage licence: CC BY-SA 4.0
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Samsung Electronics shares fell 7.4% and SK Hynix shares fell 10% in South Korea on Tuesday, 13 October, as chip stocks slid across Asian markets. The Guardian reported the Kospi down 6.25%, Japan’s Nikkei down 1.8% and Taiwan’s exchange down almost 2%.

The Guardian linked the sell-off to concerns about reported progress by Chinese memory-chip maker CXMT and comments from Broadcom chief executive Hock Tan about AI investment. The reporting does not establish how much either factor moved share prices.

What CXMT and Broadcom said

The South China Morning Post reported that CXMT said it had made key progress on a denser memory-cell design known as 4F-square. CXMT president Cao Kanyu said the company planned a server-memory product using the structure by the end of 2026, according to the report. That is a planned product, rather than evidence of commercial performance.

At an event in Singapore on Monday, Tan compared many AI investors to casino gamblers, saying they lacked understanding of their investments and held extreme expectations, Bloomberg News reported. His assessment was an opinion about investor behaviour.

Sources and context

AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.

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