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🇹🇼 Taiwan /Technology

Semiconductor stocks continue to slide as China advances chip tech

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

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  • US semiconductor stocks continued their decline on July 28, 2026, with the Philadelphia Semiconductor Index falling over 4%.
  • Major companies like Micron, Western Digital, and TSMC ADR experienced significant drops.
  • The sell-off was triggered by a report that a Chinese company has begun mass-producing self-developed deep ultraviolet (DUV) lithography machines.
  • Investor concerns about AI spending returns and high valuations are exacerbating the downturn.

The downturn in the global semiconductor market deepened on July 28, 2026, as U.S. chip stocks extended their losses, mirroring sell-offs in Asian and European markets. The Philadelphia Semiconductor Index plunged over 4%, with significant drops seen across major players.

When a sector gets this crowded, investors aren't waiting for bad news, they're just looking for a reason to take profits.

— Violeta TodorovaA senior research analyst at Leverage Shares, commenting on the crowded nature of the semiconductor sector.

Micron Technology, a memory giant, saw its stock fall by 8.9%, while Western Digital and Sandisk experienced declines of over 10% and 14.5%, respectively. Advanced Micro Devices (AMD) and Intel also posted substantial losses. Taiwan Semiconductor Manufacturing Company's (TSMC) American depositary receipts (ADRs) fell 2.24%.

The primary catalyst for the renewed sell-off appears to be a report indicating that Shanghai Aishangna Electronic Technology Group, a Chinese state-owned enterprise, has commenced mass production of its indigenously developed deep ultraviolet (DUV) lithography machines. This development challenges the long-standing dominance of ASML, a Dutch firm, in providing critical chip-making tools.

The market sentiment for AI-related semiconductor stocks has shifted from greed to fear. Investors are now interpreting all news negatively and using it as an excuse to sell, rather than calmly assessing the real impact on fundamentals.

— Vey-Sern LingManaging Director at Swissquote Private Bank, describing the change in market sentiment.

Investor anxiety is mounting over the returns on massive investments in artificial intelligence and the overall high valuations of semiconductor stocks. This sentiment is further amplified by concerns about the substantial debt levels associated with AI infrastructure development, as highlighted by recent agreements. Analysts suggest that the market has shifted from greed to fear, with investors now interpreting all news negatively as a pretext for selling rather than calmly assessing the fundamental impact.

Concerns about spending, returns, and valuations continue to escalate rather than subside. Investors are unwilling to buy the dip, indicating they are waiting for more solid evidence before rebuilding their exposure.

— Hebe ChenA senior market analyst at Vantage Global Prime, discussing investor reluctance to buy into the current market.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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