Taiwan Semiconductor Industry's Decline Faces Investors' Concerns Amid AI Boom Waning

Autore · Valeria Monti

What happened. The Taiwanese semiconductor industry has gained favor due to its close and deep supply chain connections through AI. However, South Korea's AI stocks are facing a decline due to doubts about the boom of memory chips. Foreign funds have poured $131 billion into South Korea's stock market this year, the largest among major Asian markets, according to Bloomberg data. This situation is exacerbated by Samsung and SK Hynix's $41 billion stock repurchase agreement approaching.

What really matters

Why it mattersIl punto rilevante è l’effetto potenziale sul settore AI; le fonti non consentono ancora di misurarlo con precisione.

Impact on Italian businessesNelle fonti non emerge un impatto diretto quantificato per le imprese italiane: attribuirlo ora sarebbe un salto interpretativo.

Decisions and open questions

Who is involvedLe fonti non dettagliano oltre i soggetti nominati nel testo.

OpportunitiesNessuna opportunità economica concreta è quantificata: per ora è una possibilità, non un risultato.

RisksIl rischio principale è scambiare un annuncio per un effetto già realizzato.

What to monitorServono atti, scadenze e numeri verificabili prima di trarre conclusioni operative.

Investors' Inexpressibility Explains Why the Boom of Memory Chips Has Come to an End The technology semiconductor sector has been a pillar of South Korea's economy, investing significantly in technology and innovation. However, the recent global AI deal crisis has led to a significant change in investors' expectations towards the sector. As a result, South Korea's AI stocks are facing a reduction in demand, particularly from foreign investors who were attracted by the market's performance in the first few months of this year.

Investors are now questioning the durability of the boom of memory chips, fueled by the growth of new AI global applications. This hesitation has led to a general sell-off in the market, causing some foreign funds to retreat from their decisions. 'The main challenge I see for the major investors – especially those that recently entered the market for the boom of memory chips – is that the excessive wealth in that theme has been made,' said Phillip Wool, head of portfolio management at Rayliant Global Advisors. His firm is profiting from South Korean AI stocks and is now undervalued SK Hynix and Samsung Electronics.

Foreign funds have also withdrawn outside the market, contributing to the general decline of the Kospi, the most respected Asian market, with the best results among major equity markets in the first quarter of 2026. The two chipmakers, together, occupy more than half of the Kospi and have pushed its increase before this summer. Despite the recent sell-off in AI stocks, the market remains resilient, with individual investors remaining evoked after July's rout.

Marginal credit performances have been around 33 trillion won over the preceding months, reaching 38.6 trillion won. This suggests that the market continues to show signs of resistance, even as it faces current difficulties towards South Korean companies. Sticking closely, despite the recent reduction in AI stocks, it remains to be seen how long the reduction in AI stocks will last.

However, investors should remain cautious and continue to monitor the situation attentively.

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