onsemi and Semtech Shares Are Falling, What You Need To Know - The Globe and Mail

Recent volatility in the global semiconductor sector was driven by a sharp sell-off among South Korean chipmakers, renewed concerns over debt-financed AI capital spending, and a hawkish repricing of F... Read original →

The HBM expansion pause by Korean chipmakers signals not collapsing AI demand but a shift toward capital discipline. Technically, this delays adoption of EUV and hybrid bonding in sub-3nm advanced packaging, reducing near-term visibility for ASML and ASM International. Regulatory scrutiny on debt-fueled AI capex is intensifying in the U.S. and EU, forcing SK Hynix and Samsung to optimize balance sheets rather than cut output. Micron may seize HBM3E share, while NVIDIA could accelerate CoWoS alternatives to reduce memory supplier concentration. Over the next 12–24 months, inefficient AI accelerator projects will be culled; vertically integrated players (e.g., Intel, TSMC) and high-margin analog firms (e.g., onsemi, STMicroelectronics) will emerge as safe havens. This pullback reflects macro-driven valuation reset—not a reversal of the AI semiconductor cycle.