Asia Chip Stocks Fall as Middle East Conflict Continues
By Sherry Qin
Asian chip stocks declined as the growing Middle East conflict raises concerns about higher raw-material costs for chipmaking and the pace of AI expansion.
As the conflict drags into the second week, a prolonged halt in the Strait of Hormuz--a key artery for global oil shipments--pushed oil prices above $100 a barrel.
The spike in energy prices weighed on semiconductor stocks across Asia.
Taiwan's TSMC, the world's largest contract chip maker, fell 5.8% early Monday. Smartphone chip maker MediaTek slumped 8.2%. In Japan, Tokyo Electron fell 9.3% and Kioxia plunged 14%.
In South Korea, SK Hynix shed 12% and Samsung Electronics fell 10%. The sharp declines in these index heavyweights pushed the Kospi down more than 8% in the early session and prompted the exchange operator to halt trading on Kospi shares for 20 minutes.
A senior South Korean politician warned last week that the widening conflict could disrupt shipments of critical materials used in semiconductor production, and raise energy costs for chipmakers.
Kim Young-bae, a ruling party lawmaker said that South Korean semiconductor firms source key materials such as helium from the Middle East, and supply disruptions could hurt output.
The chairman of Foxconn Technology, which makes AI servers for U.S. tech giants including Amazon and Nvidia, said Friday that a prolonged conflict could push up prices of raw-material prices, though the impact has been limited so far.
Analysts say a prolonged conflict is unlikely to derail global AI investment but could slow tech companies' AI spending in 2026 as higher energy costs and tighter financial conditions squeeze margins.
Still, the recent pullback could offer a dip-buying opportunity.
Goldman Sachs analysts say Korea's valuations are getting more attractive and expect the semiconductor memory market to remain in an "extended stronger-for-longer cycle."
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
March 08, 2026 23:40 ET (03:40 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
4 Stocks to Buy Before They Rise Further
2 Undervalued Stocks to Buy Before They Rebound
The 10 Best Companies to Invest in Now
The 10 Best Dividend Stocks
United States