Overnight US semiconductor and AI‑name valuation collapses spilled into Asia
markets, triggering a second wave of heavy selling across Japan and the broader
Asian tech supply chain in early July 17 trade. The Philadelphia Semiconductor
Index fell 4.3% on July 16, marking a second day of weakness; TSMC reported Q2
net profit +77.4% YoY and raised full‑year capex guidance to $60–64bn from
$52–56bn, yet its ADR fell 2.3% as markets question whether expanded AI compute
investment will convert to timely cash flow and profit. Bloomberg macro
strategists say the sharp US decline forced liquidations and long squeezes in
leveraged equity funds, prompting large quant‑driven outflows from
beta‑sensitive Japanese tech names including Kioxia, Tokyo Electron, Advantest
and SoftBank in the Asian session. Geopolitical tensions and commodity‑driven
valuation pressure, combined with renewed concern about higher forward inflation
and prolonged high rates, add further downside risk for high‑markup growth tech
stocks.
