The KOSPI plunged 8.10% to 6,208.34 on Tuesday morning, deepening a global semiconductor rout. 

SK Hynix sank 11.01%, and Samsung Electronics dropped 9.45%, a day before the memory giant reports quarterly earnings. As South Korea's benchmark index, the KOSPI is unusually sensitive to memory-chip makers, so a single bad session for the sector can move the entire market.

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Chip Selloff Spreads From Wall Street to Seoul

The Korea Exchange triggered a sell-side sidecar after the open, its 22nd this year. A sidecar is a short circuit-breaker that briefly halts program trading when futures swing too fast, giving the market a moment to cool off. A similar mechanism tripped on the Kosdaq shortly afterward. The index was down 6.6% at press time.

Japan followed Seoul lower. Kioxia cratered 16.5%, Tokyo Electron dropped over 9%, and Advantest slid 8%. These names supply the memory chips and testing gear that underpin data-center hardware, so they tend to move together when sentiment turns. 

SoftBank Group, an AI proxy through its Arm stake, fell nearly 5%. Overall, the Nikkei 225 lost 3.90%, while the Topix shed 2.49%.

The rout extends Monday’s weakness in US chip stocks, where the VanEck Semiconductor ETF lost over 2%, according to CNBC. AMD and Teradyne led declines, falling 5% and 4% respectively. 

Investors remain skeptical about tech giants’ heavy AI spending, worried that huge capital outlays may not translate into profits quickly enough. The selloff comes days after SK Hynix and Samsung announced 0 billion AI deals.

Earnings Gauntlet Meets Crypto Spillover

The timing raises the stakes. SK Hynix reports on Wednesday, July 29, its first earnings since a record Nasdaq debut. Microsoft, Meta, and a Fed rate decision land the same day. Apple and Amazon close Big Tech’s earnings week on Thursday. With so many catalysts clustered together, a single disappointment could amplify the swings across both equities and risk assets.

The pressure has spilled into crypto markets, which increasingly trade in step with tech stocks during risk-off moves. Bitcoin (BTC) traded near ,199, down 2.9% over 24 hours. Meanwhile, US futures pointed to further weakness, with S&P 500, Nasdaq 100, and Dow futures down 0.1%, 0.42%, and 0.04%, respectively.

Whether Wednesday’s results from SK Hynix restore confidence or confirm the doubts driving the unwind may set the tone for the week, for chip stocks and crypto alike.

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Source: BeInCrypto