Global Chip Stocks Plunge After China's CXMT Unveils Denser Memory Chip Design
ChangXin Memory Technologies (CXMT), the foremost memory chip manufacturer in China, is set to introduce a new server memory product, 4F square, by the conclusion of 2026. This innovative design increases the number of memory cells on a single chip, prompting a significant sell-off in semiconductor stocks worldwide on Tuesday. Shares of SK Hynix plummeted by over 10%, while Samsung Electronics experienced a 7.4% decline, and South Korea's Kospi index fell by 5.5%. In the U.S., Micron Technology saw a decrease of approximately 3%, with SanDisk, Seagate, and Western Digital also witnessing drops. In Japan, SoftBank Group fell by 8.5%, and the Nikkei 225 decreased by 1.8%. European chip stocks, including ASML, which dropped 3.3%, also suffered. Analysts observed that the sell-off was excessive compared to the actual risk posed by CXMT.
Key facts
- CXMT announced over the weekend it intends to launch a new server memory product before the end of 2026
- The 4F square design places each memory cell within an area equal to four times the square of F, the minimum line width of a semiconductor
- SK Hynix shares fell more than 10% in Seoul and Samsung Electronics dropped 7.4%, both touching their weakest points since August
- South Korea's benchmark Kospi index fell 5.5%
- Micron Technology stock was down around 3% in U.S. premarket trading
- SoftBank Group sank 8.5% and Tokyo Electron fell 7.2% in Japan, where the Nikkei 225 dropped 1.8%
- ASML fell 3.3% while STMicroelectronics and Infineon both dropped 5% in Europe
- Micron shed roughly 3.9% on Monday and the Nasdaq Composite closed down 0.44%; CXMT stock closed 2.8% lower in Shanghai on Tuesday
Entities
Artists
- Phillip Wool
- Vey-Sern Ling
- Cao Kanyu
- Jim Cramer
Institutions
- ChangXin Memory Technologies
- CXMT
- SK Hynix
- Samsung Electronics
- Micron Technology
- SanDisk
- Seagate
- Western Digital
- SoftBank Group
- Tokyo Electron
- Advantest
- ASML
- STMicroelectronics
- Infineon
- Rayliant Global Advisors
- UBP
- CNBC
- Nasdaq
- South China Morning Post
- Sandisk
- Barron's
- Tencent
- China Construction Bank
- Agricultural Bank of China
- ChangXin Memory Technologies (CXMT)
- Yangtze Memory Technologies Corp (YMTC)
- New York Stock Exchange
Locations
- China
- South Korea
- Seoul
- Japan
- Shanghai
- United States
- New York
Sources
- Quartz —
- Quartz —
- SCMP Lifestyle —