Samsung, SK hynix slide 10% as AI data center fears spread

The Philadelphia Semiconductor Index dropped 12.25%, dragging the Nasdaq Composite into correction territory. Nvidia fell 9.26%, losing $447 billion in value, while AMD and Micron each declined around 17%. South Korea's KOSPI plunged over 8%, triggering a trading halt, and Japan's Nikkei 225 fell about 6%. The broader market also suffered, with the S&P 500 and Dow Jones losing 4.36% and 3.44% respectively.

South Korea's KOSPI index fell 6.02% on Friday, triggering a circuit breaker halt, as chip giants Samsung and SK Hynix dropped sharply, driven by global AI stock selloffs and foreign investor exits. The index closed at 5,059.65, extending a 5.28% drop from Thursday. The government held an emergency meeting to address market conditions.

The KOSPI index fell over 8% at open, triggering a circuit breaker and halting trading. Samsung Electronics and SK Hynix dropped 8.54% and 10.52% respectively, causing panic among retail investors who had heavily bought these stocks. The decline was attributed to broader tech sector uncertainty and U.S. market trends.

Samsung Electronics will start construction on its P5 Fab 2 facility in January 2027, ahead of schedule, to expand memory chip production. The move follows expectations of chip shortages lasting through 2028, according to DealSite.

South Korea's KOSPI index fell below 5,000 on Friday, triggering a 20-minute circuit breaker. SK Hynix and Samsung Electronics, major chipmakers, saw significant declines of 11.71% and 9.98% respectively. The sell-off followed a sharp drop in US tech and chip stocks, driven by concerns over AI spending and data center regulations.

SK Hynix Inc. stock fell 9.5% to ₩1,144,000 on Friday, driven by a global selloff in AI and semiconductor shares. The decline was fueled by fears of tighter U.S. oversight on AI data centers and delayed export licenses for chipmaking equipment bound for China. Foreign investors sold an estimated 1.5 trillion won of shares. The broader market also declined, with South Korea's KOSPI index dropping over 8%.