Singapore semiconductors’ slide continues as global chip-stock rout deepens

[SINGAPORE] Semiconductor stocks in Singapore continued a sell-off for a third straight day as a global chip rout deepened despite positive results for Dutch giant ASML.

AEM Holdings shares fell again on Thursday (Oct 15) and were down as much as 9.4 per cent at S$8.85 just before noon. UMS Integration , which was trading ex-dividend at a S$0.01 quarterly dividend, declined 9.7 per cent to S$2.35 at the same time.

The pain extended to CSE Global as well, which retreated 8.8 per cent to S$0.93 at noon. Frencken shares also took a beating, falling as much as 6.4 per cent to S$2.20 at the same time.

The closely watched Philadelphia Semiconductor Index fell 4.3 per cent on Wednesday, and stood 12 per cent down over the past six sessions, its longest losing streak in 17 months. The gauge of semiconductor stocks had lost US$1.6 trillion in market value as at Wednesday, with more than half the stocks down at least 10 per cent across the six days.

“We view this latest bout as more of a recalibration of expectations than a fundamental break in the artificial intelligence investment story,” said Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management, in a Wednesday note.

AEM customer Intel was down 13 per cent over the past six sessions, while Asian chip giants also suffered losses.

South Korean memory maker SK Hynix dropped more than 6.1 per cent on the Nasdaq, while Chinese peer CXMT fell nearly 5 per cent on Thursday morning.

AEM counts one of the world’s three major memory chip companies – Samsung Electronics, Micron and SK Hynix – as a customer. The company runs the systems and equipment that test chips before they are deployed.

Still, European shares on Wednesday inched up after strong third-quarter earnings from ASML reassured European investors concerned about AI demand. The Dutch chipmaker’s shares were up 1.2 per cent after it said customers were already looking to place orders for its advanced chipmaking tools for 2029 and 2030.

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The company on Wednesday reported that its net profit had more than doubled year on year, and raised its annual revenue forecast for the third time in 2026.

Hock Tan, CEO of American chipmaker Broadcom, on Monday also compared investor sentiment in AI to gambling and warned of the industry facing a funding crunch.