Global semiconductor markets experienced a major selloff, with South Korea’s KOSPI index dropping nearly 10% on July 28, triggering a circuit breaker. Nvidia fell 5% on July 27 following reports of financing discussions potentially reaching 250 billion dollars and a 350 billion dollar chip purchase agreement connected to an OpenAI data center. The SOX semiconductor index entered bear market territory, sitting roughly 20% below its June highs. AI-adjacent crypto tokens are particularly exposed, as are crypto mining operations that depend on GPUs supplied by chipmakers. China’s progress in domestic immersion DUV lithography production could narrow the competitive moat of Western companies like ASML and Nvidia.
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