Micron Technology (NASDAQ: MU) saw its stock plummet by 6.34% to $223.20 in intraday trading on Tuesday, as the semiconductor industry faced pressure following news of China's increased support for its domestic chipmakers. The move comes as part of a broader decline among U.S. artificial intelligence chip companies.

The selloff was triggered by reports that China has ramped up subsidies for major data centers, potentially cutting their energy costs by up to 50%. This move is seen as a strategic effort to bolster China's domestic semiconductor industry in response to U.S. export restrictions on advanced AI chips. The subsidies aim to help Chinese tech giants like ByteDance and Alibaba cope with higher power costs resulting from using less efficient homegrown chips developed by companies such as Huawei and Cambricon.

Adding to the downward pressure, bearish options flow was identified in Micron, with options volume reaching 96,000 contracts traded. This bearish sentiment, coupled with the broader market concerns about increased competition from Chinese chipmakers, contributed to Micron's significant stock decline. As the semiconductor industry continues to navigate geopolitical tensions and shifting market dynamics, investors will be closely watching how companies like Micron adapt to these challenges in the coming weeks.