Chip Firms

Drop comes after South Korean company SK Hynix’s results undershot investors’ expectationsBusiness live – latest updatesShares in companies linked to AI have plunged further after disappointing results from the South Korean chipmaker SK Hynix, sending the country’s stock market tumbling for the second day in a row.Seoul’s Kospi index, which is dominated by semiconductor manufacturers, slid by as much as 12.6% at one point on Wednesday, following on from a near 11% slump the previous day, reaching its lowest level since early April. Continue reading...

• Chip stocks plummeted across US and Asian markets on Tuesday, leading to a temporary trading pause on South Korea's Kospi index after it slid by 8%. • The sell-off is driven by growing investor "jitters" regarding the long-term profitability of artificial intelligence. • Analysts are questioning whether AI can generate enough revenue to recoup the hundreds of billions of dollars currently being spent by governments and corporations.

• South Korea has announced US$950 billion in new AI initiatives involving semiconductor giants Samsung Electronics and SK Group in partnership with U.S. tech firms. • The agreements aim to secure a stable supply of high-performance memory chips, which are currently in short supply globally. • These deals reflect a strategic push by U.S. AI leaders to form closer ties with South Korean chipmakers to power and develop more advanced AI systems.

• Chinese AI and semiconductor firms are driving a projected rebound in onshore IPOs for 2026 as Beijing prioritizes technological self-reliance. • Baidu’s chip unit, Kunlunxin, is reportedly seeking approval for a $2 billion Hong Kong listing alongside plans for a smaller domestic float. • This shift allows the Chinese government to maintain tighter regulatory influence and align corporate funding with national strategic priorities.

• China is experiencing a strong rebound in onshore technology IPOs, specifically driven by companies within the artificial intelligence and semiconductor chip sectors. • This surge occurs amidst ongoing US-China tech rivalry, as firms seek critical funding to scale operations and maintain competitiveness. • Citigroup's Ho-Yin Lee notes that mainland listings allow Hong Kong-traded firms to access a deeper pool of domestic capital and enhance their local branding.

• Chinese artificial intelligence and semiconductor companies are leading a resurgence in onshore initial public offerings (IPOs). • This trend marks a significant reversal of a listing hiatus that had persisted since the beginning of 2024. • The shift toward domestic listings is driven by the ongoing tech war between China and the United States, which has complicated overseas financing.

• Chinese artificial intelligence and semiconductor companies are spearheading a rebound in onshore initial public offerings (IPOs). • Ho-Yin Lee, Citigroup's Asia-Pacific co-head of technology and communications, notes that mainland listings allow companies to access a deeper pool of domestic capital. • This shift is significant as it enables firms previously traded in Hong Kong to reach a broader investor base and enhance their domestic branding.

• Singaporean semiconductor and electronics firms are accelerating plans to open or expand manufacturing and R&D facilities in the United States, driven by surging global demand for AI chips and US incentives to onshore critical supply chains. • Reports indicate that several Singapore‑listed chip‑assembly and test companies are evaluating sites in Arizona, Texas, and New Mexico, where state and federal subsidies could cover up to 40% of capital expenditure under the US CHIPS Act framework. • Industry executives told local media that geopolitical pressure on Taiwan and China is prompting customers to diversify production away from high‑risk hubs, turning Singapore‑based firms into key intermediaries in global AI hardware networks.

• Elon Musk stated Tesla and SpaceX AI will continue large Nvidia chip purchases even as Tesla advances its AI5 chip, optimized for edge compute in Optimus and Robotaxi. • Tesla's Terafab AI chip manufacturing facility is set to launch within seven days from March 14, potentially by March 21. • Musk praised Nvidia CEO Jensen Huang, noting AI5's efficiency in half-reticle format could halve fab needs, with AI6 potentially matching dual AI5.