A circuit board displayed inside the Texas Instruments (TI) semiconductor wafer plant in Sherman, Texas, US, on Wednesday, Dec. 17, 2025. <\/p>\n
Desiree Rios | Bloomberg | Getty Images<\/p>\n
Asian tech shares on Friday tracked losses in U.S. chip stocks after a downbeat earnings report from Broadcom<\/a> sparked a rotation out of artificial intelligence-linked names into more defensive sectors.<\/p>\n The weakness was pronounced in South Korea’s chip-heavy market. Samsung Electronics fell 6.4%, while SK Hynix dropped more than 9%. Other tech-related names also came under pressure, with Samsung SDI down over 6.43%, LG Display falling 5.65%.<\/p>\n Japanese technology stocks also fell. Tokyo Electron<\/a> and Advantest<\/a> dropped over 6% and 5% respectively. Murata Manufacturing<\/a>, manufacturer of electronic components, fell 2.11%. Fanuc<\/a>, manufacturer of industrial robotics,\u00a0 lost 1.95%.\u00a0<\/p>\n In Taiwan, Apple supplier Hon Hai Precision Industry<\/a> declined 2.9%, contract manufacturer Pegatron<\/a> was down 0.1% and iPhone camera lens maker Largan Precision lost more than 3%. Chip giant Taiwan Semiconductor Manufacturing Co<\/a>, or TSMC fell 0.84%.<\/p>\n The broader decline followed a sell-off in U.S. semiconductor stocks overnight after Broadcom tumbled more than 12% following a fiscal second-quarter revenue miss. The weakness spread across the sector, dragging the VanEck Semiconductor ETF down more than 1%, while Arm Holdings lost over 4% and Micron Technology slid nearly 8%.<\/p>\n “After such massive gains a ‘correction’ for recent winners was (and still is) sorely needed for a reset,” Andrew Jackson, equity strategist at Ortus Advisors, said on Friday.<\/p>\n