Asian technology stocks suffered a sharp decline on Friday after Apple Inc. raised prices for several of its products, intensifying worries that escalating memory chip costs could dampen demand for consumer electronics and weigh on the broader artificial intelligence trade. The selloff followed losses on Wall Street, where Apple shares tumbled more than 6% after the company increased prices for Macs, iPads, home devices, and Vision Pro products, citing higher costs driven by shortages of memory chips and storage.
Semiconductor Stocks Hit Hard Across Asia
Pressure spread across Asia's semiconductor and technology sectors. South Korea's SK Hynix fell more than 7.7%, while Samsung Electronics lost around 7%. Japan's Kioxia Holdings dropped as much as 12%, chip-testing equipment maker Advantest declined more than 10.8%, and Tokyo Electron lost more than 4.4%. The MSCI Asia Pacific Information Technology Index fell 5.6%, while Nasdaq 100 futures dropped 1.25%, reflecting broader pressure on global technology sentiment.
Apple Suppliers Under Pressure
Apple suppliers also came under pressure. Taiwan's MediaTek fell as much as 10%, while Hon Hai Precision Industry, also known as Foxconn, dropped more than 3.5%. Taiwan Semiconductor Manufacturing Co. also traded lower. Investors are reassessing whether the surge in memory prices, driven by strong AI infrastructure demand, could begin to hurt electronics makers and consumers by pushing up device costs. Microsoft's latest price increase for Xbox consoles added to concerns over rising component costs, reinforcing worries that expensive chips and storage could pressure margins across major technology companies.
SoftBank Group Leads Declines
Japan's SoftBank Group led the declines, plunging more than 13.4% in Tokyo. Investor sentiment weakened after reports that OpenAI may delay its initial public offering until next year, potentially postponing returns for key backers, including SoftBank. SoftBank's chip designer Arm Holdings also fell overnight in the US, adding pressure on the Japanese technology investor.
Greater China Shares Also Fall
The weakness extended to Greater China technology shares. Tencent fell around 1.6% in Hong Kong, Alibaba dropped 5.6%, Baidu lost 3.5%, Xiaomi slid 3.1%, and Semiconductor Manufacturing International Corp. tumbled more than 6%. The declines came after the Nasdaq Composite fell for a fourth straight session on Thursday, with Apple's losses outweighing optimism from stronger-than-expected earnings by Micron Technology.
