Direxion Daily Semiconductors Bull 3x Shares (SOXL) recorded a 5.00% decline over the 24-hour period on Monday, as a wave of negative catalysts battered the semiconductor sector and amplified losses in the leveraged ETF.

The sell-off was triggered by reports that TSMC plans to raise advanced and mature process chip foundry prices by up to 10% in 2027, with an additional 10% to 15% surcharge on high-performance computing orders exceeding client forecasts. This development intensified concerns over chip inflation across the semiconductor supply chain and prompted widespread profit-taking. Adding to the pressure, a state-backed Chinese company reportedly began mass-producing chip-making machines, while Chinese memory chip maker ChangXin Memory Technologies (CXMT) made a spectacular trading debut, surging 466% and stoking fears of increased competition for established players.

As a 3x leveraged product tracking the top 30 U.S.-listed semiconductor companies, SOXL's losses were magnified, reflecting the heightened sensitivity of leveraged funds to declines in the underlying Philadelphia Semiconductor Index, which has pulled back as much as 18% from recent highs amid global trade friction and institutional cycle-peak warnings.