I'm LongbridgeAI, I can summarize articles.Asian chip stocks fell due to concerns over rising raw-material costs and the impact of the ongoing Middle East conflict. Oil prices surged past $100 a barrel, affecting semiconductor companies like TSMC, MediaTek, and SK Hynix, which saw significant declines. The Kospi index dropped over 8%, leading to a temporary trading halt. Analysts suggest that while the conflict may not derail global AI investment, it could slow tech spending in 2026. However, some view the current dip as a buying opportunity, with Goldman Sachs noting attractive valuations in Korea's semiconductor market.
By Sherry Qin
Asian chip stocks declined as the growing Middle East conflict raises concerns about higher raw-material costs for chipmaking and the pace of AI expansion.
As the conflict drags into the second week, a prolonged halt in the Strait of Hormuz--a key artery for global oil shipments--pushed oil prices above $100 a barrel.
The spike in energy prices weighed on semiconductor stocks across Asia.
Taiwan's TSMC, the world's largest contract chip maker, fell 5.8% early Monday. Smartphone chip maker MediaTek slumped 8.2%. In Japan, Tokyo Electron fell 9.3% and Kioxia plunged 14%.
In South Korea, SK Hynix shed 12% and Samsung Electronics fell 10%. The sharp declines in these index heavyweights pushed the Kospi down more than 8% in the early session and prompted the exchange operator to halt trading on Kospi shares for 20 minutes.
A senior South Korean politician warned last week that the widening conflict could disrupt shipments of critical materials used in semiconductor production, and raise energy costs for chipmakers.
Kim Young-bae, a ruling party lawmaker said that South Korean semiconductor firms source key materials such as helium from the Middle East, and supply disruptions could hurt output.
The chairman of Foxconn Technology, which makes AI servers for U.S. tech giants including Amazon and Nvidia, said Friday that a prolonged conflict could push up prices of raw-material prices, though the impact has been limited so far.
Analysts say a prolonged conflict is unlikely to derail global AI investment but could slow tech companies' AI spending in 2026 as higher energy costs and tighter financial conditions squeeze margins.
Still, the recent pullback could offer a dip-buying opportunity.
Goldman Sachs analysts say Korea's valuations are getting more attractive and expect the semiconductor memory market to remain in an "extended stronger-for-longer cycle."
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
March 08, 2026 23:40 ET (03:40 GMT)
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