The semiconductor sector experienced a broad pullback, with the iShares Semiconductor ETF poised to end its six-week winning streak. Several major components saw significant declines. Marvell Technology and Intel both fell approximately 4%, while ASML Holding NV and ARM Holdings dropped over 3.5% each. AMD's share price also declined by nearly 3%.
Market analysis indicates this sell-off in chip stocks is closely tied to the ongoing strike developments at South Korea's Samsung Electronics. The company's union has confirmed a planned 18-day strike starting May 21st, proceeding as scheduled despite management's offer for unconditional wage negotiations. This news triggered a sharp 8.6% single-day plunge in Samsung's share price, wiping out nearly 150 trillion won in market value. Its competitor SK Hynix also saw a significant 7.7% drop.
Industry experts warn that if the Samsung strike proceeds, it will pose a severe test for the global semiconductor supply chain. In the AI era, demand for memory chips, particularly high-bandwidth memory, far exceeds supply. An analyst from KB Securities noted that even after an 18-day strike concludes, it could take an additional two to three weeks to fully normalize production lines. This potential production gap could trigger a ripple effect across the global tech industry, potentially impacting shipment schedules for AI servers, smartphones, and data center equipment.
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