Global semiconductor stocks came under pressure after reports of rapid technological advances by Chinese chipmaker ChangXin Memory Technologies (CXMT) raised concerns about intensifying competition in the memory chip industry. South Korea’s tech-heavy KOSPI plunged 6%, marking its steepest single-day decline since July, while an index of Asian stocks excluding Japan fell more than 2%.
CXMT has claimed a breakthrough in chip technology that industry leaders such as Samsung Electronics and SK Hynix have been pursuing for years. The assertion, which has not been independently verified, highlights China’s push to reduce its dependence on foreign technology and strengthen its position in the semiconductor industry.
The Chinese memory chipmaker plans to introduce a new chip designed to deliver greater computing capacity within a smaller area, CXMT President Cao Kanyu said at an industry conference in Shanghai over the weekend. The product, intended for data centre servers, will use a so-called 4F² architecture and is expected to be launched before the end of the year, according to remarks confirmed by a company spokesperson.
If CXMT has successfully achieved the 4F² design, it would mark a significant milestone, potentially putting the company ahead of Samsung and SK Hynix in this area despite US sanctions restricting its access to advanced manufacturing equipment, including ASML Holding’s most sophisticated machines. Although Cao did not disclose further technical details, his comments triggered a sell-off in semiconductor stocks globally.
Shares of Samsung Electronics and SK Hynix fell more than 7% each in South Korea on Tuesday, dragging the broader KOSPI lower. The decline followed a 4% drop in Micron Technology shares in the US overnight.