BlockBeats news: On July 18, the global semiconductor sector continued to weaken, with Japanese semiconductor leader Kioxia plunging 16% in a single day, down approximately 50% from its high point a month ago. Meanwhile, Japanese chip industry stocks such as Ibiden, Tokyo Electron, and Sumitomo Metal Mining generally declined by 8% to 10%.
In the U.S. market, the Philadelphia Semiconductor Index (SOX) has declined approximately 21% from its historical high on June 22, officially entering a technical bear market. Despite TSMC reporting better-than-expected earnings and raising its guidance, its stock still dropped 7%, indicating continued pressure on market sentiment.
Reports indicate that multiple institutions believe the current semiconductor sector correction is primarily driven by overcrowded positions and profit-taking, rather than a deterioration in industry fundamentals. Meanwhile, Citi data shows that this week, semiconductor-related ETFs in South Korea and Taiwan received net inflows of approximately $6.4 billion and $2.8 billion, respectively, while South Korea’s stock market also saw about $500 million in net foreign investment, suggesting that some capital has begun to position itself at lower levels.