Global semiconductor shares suffered steep losses on July 28, 2026, driven by escalating fears of low-cost Chinese competition and anxiety over tech companies' massive borrowing for AI infrastructure.
Asian equity markets felt the initial brunt. South Korea's Kospi index plummeted 11%, triggering circuit breakers for the ninth time in 2026.
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Heavyweights SK Hynix and Samsung Electronics dropped 14% and 13%, respectively, following news of a blockbuster Shanghai IPO by Chinese memory maker CXMT.
Wall Street continued the downturn, pushing the PHLX Semiconductor Index down over 5%.
Memory leader Sandisk fell more than 8%, Advanced Micro Devices dropped over 8%, and Intel, Western Digital, Marvell, and Seagate Technology each declined over 4%.
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Analysts cited growing skepticism about the timing of returns on multi-billion-dollar AI investments by major hyperscalers.
Additional pressure came from reports that a Chinese state-backed enterprise began mass production of critical chipmaking equipment, sparking further declines in European equipment supplier ASML.
Before the sell-off, AMD's first-quarter data center revenue surged 57% year-over-year to $5.8 billion, driven by EPYC processors and Instinct AI accelerators.
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The broader market rout followed Alphabet's announcement of elevated capital expenditures for AI buildouts, which caused its stock to drop.
