Chip Stocks Crash as China Advances Domestic Chip Production

Chip stocks across Asia and the US took a hit on July 28 after Nvidia dropped 5% due to reports of financing guarantees worth up to $250 billion. This was followed by ASML, which fell 8.5%, as China began advancing its domestic production of immersion DUV lithography machines.

The SOX semiconductor index had already entered bear market territory in mid-July, sitting roughly 20% below its June highs. The sudden selloff sent South Korea's KOSPI index down nearly 10%, triggering a circuit breaker and dragging Japan's Nikkei down 4.4%.

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