Lam Research, Monolithic Power Systems, Marvell Technology, Micron, and onsemi Shares Plummet, What You Need To Know - The Globe and Mail

Recent global semiconductor stocks have experienced a notable pullback, driven by concerns over intensified competition from China and doubts about the sustainability of AI-related demand. Companies s... Read original →

The recent downturn in global semiconductor stocks is rooted in escalating U.S.-China tech rivalry and weakening AI demand outlook. Advancements in immersion deep ultraviolet lithography by Chinese manufacturers in Taiwan, China, are eroding U.S. cost advantages in advanced chip production, particularly affecting memory chip pricing. New U.S. tariffs on 60 trading partners, including the EU, Japan, South Korea, and Taiwan, have triggered a supply chain margin squeeze, especially for OSAT players like Amkor and FormFactor. Investors are wary of oversupply risks from China’s memory chip expansion, weighing heavily on companies such as Micron. In response, firms may shift production to Southeast Asia or Hong Kong, China, to bypass trade restrictions. Over the next 12–24 months, the semiconductor landscape will likely see a reconfiguration of manufacturing capabilities, with regionalization of chip production becoming a defining trend.