SK hynix, Kioxia Slide: 3 Reasons Asia's Chip Stocks Fell Together

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On October 22, SK hynix closed down 5.49% at 1,223,000 won, and Samsung Electronics closed down 4.03% at 214,500 won. The same day, Japan’s Kioxia fell 6.77% and Taiwan’s TSMC fell 1.45%. The night before, the Nasdaq in the US had risen 1.05%.

Chip stocks in all three countries fell together for three reasons: two pieces of news that came out after the US regular session closed (Lam Research’s after-hours drop and Tesla’s capital spending cut), and worries that AI spending peaks in 2027. On top of that, Korea saw profit-taking after the previous day’s surge, and Taiwan had a typhoon.

How far they fell: equipment > memory > foundry

• Tokyo Electron and Advantest (chip equipment): Tokyo Electron −6.99%, Advantest −6.01%
• Kioxia (NAND): −6.77%, 12,595 yen
• SK hynix (DRAM and HBM): −5.49%, 1,223,000 won
• Samsung Electronics: −4.03%, 214,500 won
• TSMC (contract chipmaking): −1.45%, 2,385 Taiwan dollars

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By index, the KOSPI fell 3.52% (5,533.77), the Nikkei 225 fell 2.65% (down 1,713 points to 62,907.84, its lowest since July 30), and Taiwan’s TAIEX fell 1.81% (46,041.43). SK hynix’s close of 1,223,000 won is the same as its October 20 close: it gave back all of the 5.81% it gained on the 21st.

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The order of the declines points to the cause. Equipment stocks fell the most, memory came next, and TSMC fell the least.

Reason 1. Lam Research and Tesla news after the US close

Before Asian markets opened, a wave of earnings came out in the US after the close.

• Lam Research: a chip equipment maker. Quarterly revenue of $8.22 billion (+54%) beat expectations, and its revenue guidance for next quarter, $8.6 billion (plus or minus $400 million), was slightly above the market consensus ($8.54 billion). Even so, the stock dropped 6-7% after hours. The guidance range was wide, the company said the figure “would have been higher without supply constraints,” and it expects China’s share of revenue, 35%, to shrink sharply next quarter. Lam Research’s stock had risen 66%, from $156.74 a year earlier (end of October 2025) to $260.81 on the 21st, so numbers slightly above expectations were not enough.
• Tesla: cut its capital spending for this year from $25 billion or more to about $20 billion. Q3 spending was $4.73 billion, less than expected (about $7.95 billion). The stock fell about 3% after hours.

Japanese media cited both the uncertainty in Lam Research’s revenue guidance and tensions in the Middle East as reasons for Tokyo Electron’s drop. Being in the same equipment business, it took the most direct hit. After this news, Nasdaq 100 futures fell 0.7-1.3% during Asian trading hours.

Reason 2. Worries about a 2027 AI spending peak, and big tech earnings next week

Chip stocks depend on how much more big tech spends on AI data centers. On Wall Street, there is a view that once Q3 earnings and the US midterm elections are over, the market will begin treating 2027 as the year AI spending peaks (Wells Fargo, Fortune, October 7).

The same day, Meta raised the low end of its capital spending range for this year from $130 billion to $135 billion. Japanese media read even this as “wariness about huge spending.” If spending is cut, chip demand becomes the worry; if it is raised, the return on it becomes the worry.

The next checkpoint comes in the early hours of October 29, Korea time. Microsoft and Alphabet report right after the US Federal Reserve’s rate decision (3 a.m.), followed the same week by Amazon (expected) and Kioxia (October 30).

Reason 3. Local factors: profit-taking in Korea, a typhoon in Taiwan

• Korea: After the surge on the 21st (Samsung Electronics +5.67%, SK hynix +5.81%), profit-taking followed. Samsung Electronics’ share buyback ended on October 6, and SK hynix’s 40 trillion won buyback also wrapped up on October 21 (the plan ran through November 19), leaving less buying to absorb it. From October 1 to 22, foreign investors’ net selling on the KOSPI came to 17.403 trillion won, 76.9% of it in these two stocks (Financial News). On the day, institutions posted net sales of 463 billion won, and individuals net purchases of 381 billion won.
• Taiwan: As a typhoon approached and a possible market closure was discussed, investors unloaded shares ahead of the break (China Times). TSMC rose as high as 2,435 Taiwan dollars in the morning before slipping in the afternoon.
• Japan: Equipment stocks carry a large weight in the index. Tokyo Electron alone pulled the Nikkei down about 239 points in the morning session.

Frequently asked questions

Q. US chip stocks rose, so why did Korea and Japan fall? The US regular-session gains on the 21st came before the Lam Research and Tesla announcements. Asia opened after seeing the after-hours reaction to them.

Q. Why did TSMC fall less? TSMC is a customer of the equipment makers, and memory prices do not affect it. It is a step removed from the worries over equipment makers’ outlooks and over memory supply and demand.

Q. When does SK hynix report earnings? It is scheduled for October 28, the same day as Microsoft’s and Alphabet’s results.

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Sources: Binucle Data (regular-session closes; Tokyo and Taiwan exchange closes), Financial News and Etoday (October 22, 2026 market close reports), Newspim (October 22, 2026, Tesla capital spending), Kyodo News and Fisco (October 22, 2026 Tokyo close), China Times (October 22, 2026 Taiwan close), Lam Research fiscal 2027 Q1 results (October 21, 2026), Fortune (October 7, 2026). Lead photo: Laura Ockel / Unsplash (Unsplash License)

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Information only, not investment advice.