Key Notes
- Kioxia closed 13.14% lower, while SK hynix lost 9.46%, Samsung fell 7.57% and MediaTek declined 6.86% in their local markets.
- Investors are pricing in possible delays to American data-center construction after the election, rather than newly announced region-wide AI rules in Asia.
- The selling follows a divided Wall Street session in which the Nasdaq rose 1.44% while the Philadelphia Semiconductor Index fell 3.13%.
Asian chip stocks fell sharply on Thursday as investors worried that tighter U.S. rules on data-center construction would slow demand for memory and semiconductor equipment. Kioxia lost more than 13%, while SK hynix and Samsung Electronics led a steep decline in South Korea.
The selling extended the pressure on U.S. hardware suppliers after Democrats won control of both chambers of Congress. It also exposed a divide in the post-election rally: shares tied to building AI infrastructure fell as investors bought companies expected to benefit from cheaper energy.
South Korea’s KOSPI closed down 5.28% at 5,383.80. Japan’s Nikkei 225 lost about 1.8% to 61,077.9, according to the Associated Press market wrap. The losses were concentrated in some of the region’s biggest beneficiaries of AI investment.
Memory Stocks Lead the Decline
The following are November 5 closing moves for the companies’ local primary listings:
- Kioxia Holdings (TSE: 285A): down 13.14% to ¥9,324.
- SK hynix (KRX: 000660): down 9.46% to 1,264,000 won.
- Samsung Electronics (KRX: 005930): down 7.57% to 201,500 won.
- MediaTek (TWSE: 2454): down 6.86% to NT$3,460.
MediaTek’s percentage decline is calculated from Taiwan Stock Exchange records showing a NT$255 fall from Wednesday’s NT$3,715 close.
SoftBank Group (TSE: 9984) also fell, alongside Japanese equipment makers Tokyo Electron and Advantest. That spread put pressure on investment companies, memory producers and the businesses supplying tools to chip factories.
U.S. Construction Risk Reaches Asian Suppliers
The immediate concern is the pace of the American AI buildout. Data-center companies and their equipment suppliers sold off on expectations of tougher regulation after the election, Reuters reported. The news agency said most analysts still expect demand for AI and computing capacity to grow, but anticipate at least a temporary slowdown.
Texas is a particular focus because of its pipeline of planned projects. Tiger Brokers chief market strategist James Ooi wrote in a note cited by Dow Jones that Gina Hinojosa’s election as governor had raised concerns about slower construction or fewer developments.
U.S. voters also approved data-center restrictions in at least 29 jurisdictions this week. The measures range from binding prohibitions to advisory calls for a pause, with different consequences for individual projects.
For Asian manufacturers, delays can shift the timing of equipment and component orders. The election outcome alone does not establish that customers have canceled purchases, and the reports do not describe a new region-wide restriction on AI development in Asia.
The Election Rally Splits Across Industries
Wednesday’s U.S. session showed the same divide. The Nasdaq Composite rose 1.44%, while the Philadelphia Semiconductor Index fell 3.13%. CoreWeave lost 9.9%, and memory and storage suppliers joined the U.S. chip selloff.
The broader Wall Street rally included sharp gains in large technology platforms. The weakness was therefore concentrated in particular exposures to AI construction rather than a uniform decline across American technology stocks.
Asia’s performance was uneven too. Dow Jones reported gains in Chinese chipmakers during the morning session, including Moore Threads and Shanghai Biren Technology. Bloomberg’s account described investors moving toward automakers, consumer businesses and Chinese internet companies as semiconductor shares declined.
Record Earnings Offer Little Protection
The selling follows strong results from South Korea’s leading memory producers. SK hynix disclosed record operating profit last week as HBM4 shipments and premium server-memory sales expanded. Its shares jumped 10.89% on the day of that report.
Samsung’s detailed quarterly results showed a 783% increase in operating profit, although its shares fell as the numbers broadly matched already elevated expectations. Its semiconductor division generated almost all the group’s operating profit.
Both companies remain exposed to the spending plans of customers building AI systems. SK hynix’s October outlook called for its M15X facility to reach maximum capacity by year-end as it expanded HBM4 production.
