- Asian technology shares fell Friday, tracking losses in U.S. semiconductor stocks.
- The weakness was pronounced in South Korea's chip-heavy market.
Asian tech shares on Friday tracked losses in U.S. chip stocks after a downbeat earnings report from
Broadcom sparked a rotation out of artificial intelligence-linked names into more defensive sectors.
The weakness was pronounced in South Korea's chip-heavy market. Samsung Electronics fell nearly 7%, while SK Hynix dropped more than 8%. Other tech-related names also came under pressure, with Samsung SDI down over 7%, LG Display falling 7.4%, LG Innotek losing 6.1%, and Seoul Semiconductor sliding more than 6%.
Japanese technology stocks also fell.
Tokyo Electron and Advantest dropped over 6% and 5% respectively. Murata Manufacturing, manufacturer of electronic components, fell 4.8%. Fanuc, manufacturer of industrial robotics, lost 4.1%.
Chip giant
Taiwan Semiconductor Manufacturing Co, or TSMC, however, bucked the broader trend to edge 0.4% higher.
The broader decline followed a sell-off in U.S. semiconductor stocks overnight after Broadcom tumbled more than 12% following a fiscal second-quarter revenue miss. The weakness spread across the sector, dragging the VanEck Semiconductor ETF down more than 1%, while Arm Holdings lost over 4% and Micron Technology slid nearly 8%.
"After such massive gains a 'correction' for recent winners was (and still is) sorely needed for a reset," Andrew Jackson, equity strategist at Ortus Advisors, said on Friday.<small>Source: CNBC</small>
Business
Asia tech stocks drop after Broadcom rattles AI trade and drags Wall Street names lower
CNBC
June 05, 2026
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