Major semiconductor companies across Asia saw their shares drop again on Wednesday, extending a sell-off that has now entered its fifth day, as the global retreat from artificial intelligence-related stocks deepens.

In Japan, Tokyo Electron fell 3.2%, while Renesas Electronics dropped 2.8%. In South Korea, SK Hynix plunged 9.6%, at one point falling more than 15% during the session. In Taiwan, TSMC declined 2.1%. The Bloomberg Asia-Pacific Semiconductor Index has widened its weekly losses to nearly 7%.

This sell-off is driven by growing concerns over the return on investment for AI infrastructure. Since 2023, AI-related chip stocks have surged significantly, but recent earnings reports from several major tech companies suggest that high AI capital expenditures have yet to translate into the expected revenue growth, prompting investors to reassess valuations.

Analysts point out that the pace of global AI chip demand growth may be slowing. Meanwhile, policy uncertainty from the United States is adding additional pressure. The U.S. government recently announced expanded export controls on advanced semiconductor manufacturing equipment, including technologies used to produce AI chips. These measures require U.S. companies to obtain licenses before exporting specific equipment to many countries and regions, further fueling doubts about the industry's outlook.

As a result, some chipmakers have begun adjusting their production capacity plans for the second half of 2026. Analysts at Nomura Securities suggest the market is undergoing a "necessary correction." While the medium-to-long-term outlook for AI chip demand remains positive, near-term volatility in the sector is likely to persist until a new balance is struck between corporate earnings expectations and actual performance.