Global Chipmakers Face Sell-Off Amid Rate Hike Fears, AI Funding Concerns

By EC Assets · Published 15 October 2026

Global chipmakers are experiencing a significant sell-off as inflation data fuels fears of further interest rate hikes. This downturn is exacerbated by concerns over AI infrastructure funding and intensifying competition. South Korean chipmakers, including Samsung Electronics and SK Hynix, have been particularly affected. Shares of Samsung and SK Hynix led the South Korean KOSPI index lower amid a global chip stock sell-off. The KOSPI closed at a six-month low due to these chipmaker slumps and AI worries. South Korean memory stocks faced pressure after DeepSeek's latest AI model raised concerns about demand. Both Samsung Electronics and SK Hynix shares fell more than 3%. Global tech hardware stocks extended losses as Asian chipmakers followed U.S. peers downwards. The global chip-stock rout deepened as rate fears collided with AI funding woes. Competition from Chinese chipmaker CXMT is also putting pressure on global memory chip giants. CXMT has reported progress on a new memory chip design, raising concerns for companies like Samsung, SK Hynix, and Micron. Despite these challenges, some chipmakers are expanding investments in other regions. Applied Materials plans to invest $5 billion over 10 years in India. Infineon and NXP are also expanding research and development, talent, and partnerships as India develops its chip industry. South Korea's KOSPI index rebounded by 0.74% on Wednesday. This recovery followed five consecutive sessions of losses, with investors buying semiconductor stocks. Samsung Electronics and SK Hynix advanced, supported by this recovery. This article is intended for informational purposes only. It does not constitute investment advice.