Samsung Electronics, SK Hynix shares tumble over 7% as chip rout spreads from Wall Street

In a significant downturn, shares of Samsung Electronics and SK Hynix experienced a drastic decline of over 7% during Thursday's early trading session. This sharp drop contributed to a notable decrease in South Korea's benchmark Kospi index, following a rough night for the tech-focused Nasdaq Composite. Samsung Electronics saw a plunge exceeding 7%, while SK Hynix faced an even steeper decline, with shares sinking more than 9% at the market's opening. This selloff has erased billions in market capitalization for Asia's leading chip manufacturers, highlighting their vulnerability in the current global technology market upheaval. Compounding the situation, SK Square, the largest stakeholder in SK Hynix, also witnessed a fall of over 10%. This trend reflects the widespread losses permeating the semiconductor industry as investors react to unsettling market conditions. The Nasdaq has had a dismal start to July, prompting aggressive sell-offs of chip stocks. On the previous day, Wall Street reported a steep drop in shares of Micron Technology, which fell more than 10% despite an impressive 260% increase this year. Sandisk also suffered significant losses, shedding over 10% overnight. Other major tech players, including Nvidia and Broadcom, joined the downward trend, with declines ranging from 1% to 2%.