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Semiconductor and related stocks in Asia fell on Wednesday morning after Nvidia’s U.S. shares plunged overnight.
In the United States, semiconductor manufacturers NVIDIA The company’s shares plunged more than 9% in regular trading, leading semiconductor stocks lower amid selling pressure on Wall Street. Economic data released on Tuesday resurfaced concerns about the health of the U.S. economy. Nvidia shares continued to fall after the close on Tuesday, down 2%, after Bloomberg reported the company had received a subpoena from the Justice Department as part of an antitrust investigation.
Nvidia’s value chain stretches all the way to South Korea, specifically memory chip maker SK Hynix and conglomerate Samsung Electronics.
Samsung shares fell 2.6% and SK Hynix slid more than 6%, helping drag the Korean stock index down 2.5%. The small-cap Kosdaq fell 3%. SK Hynix supplies Nvidia with high-bandwidth memory chips used in its AI chipsets.
As a direct supplier to Nvidia, Tokyo Electron Semiconductor test equipment suppliers fell 7%, Advantest It decreased by more than 8%.
Japanese Investment Holding Company SoftBank Groupwho owns shares in chip design companies. armfell 6%.
Contract Chip Manufacturers Taiwan Semiconductor Manufacturing Company It was down 4.3%.TSMC makes Nvidia’s high-performance graphics processing units that power large-scale language models, machine learning programs that can recognize and generate text.
Taiwanese Hon Hai Precision Industry The company, known internationally as Foxconn, fell 5%. It has a strategic partnership with Nvidia.
Nvidia’s market capitalization fell by $279 billion in the U.S. on Tuesday.
—CNBC’s Lim Hui Jie contributed to this report.
