Semiconductor sector hit by sell‑off and supply‑chain shifts

Global semiconductor stocks suffered a broad sell‑off, wiping out roughly $1.3 trillion in market value over a week, with the Philadelphia Semiconductor Index down 10.8 % and the VanEck Semiconductor ETF falling 13 %. Analysts attribute the decline to high valuations, tighter U.S. monetary policy and concerns over the sustainability of AI‑related infrastructure spending, rather than weak demand. Amid the turbulence, South Korean memory maker SK Hynix completed a $28 billion ADR placement on the Nasdaq, seeking fresh equity capital to fund EUV scanner purchases and reduce its valuation discount.

At the same time, Apple began testing DRAM chips from China’s CXMT for iPhones sold only in the Chinese market, aiming to diversify its supply chain and curb rising production costs. The move follows U.S. lobbying for eased restrictions on Chinese semiconductor firms that are currently on the Pentagon’s blacklist. Apple is also in talks with YMTC for NAND memory, continuing its effort to mitigate the impact of global chip shortages and price pressures.