Chip, storage shares fell on Monday. Wolfspeed, SOXL down around 7%; SMCI, SanDisk, Micron, SK Hynix down over 4%; Intel, AMD down over 2%.

Micron and its peers were taking a hit on Monday as investors reacted to the news that China's ChangXin Memory Technologies, or CXMT, had advanced development of a new chip that can store more data.

CXMT President Cao Kanyu said at an industrial event that the company planned to roll out a new product by the end of the year, according to a report by the South China Morning Post that cited a company statement.

The memory chip features a so-called 4F square design, which is able to store more memory on a single chip. Both SK Hynix and Samsung have also been exploring that set-up.

Investors have been worrying for a while that CXMT will upend the memory market. Shares surged 466% on their trading debut in July, giving the company a market capitalization of just under $500 billion.

CXMT remained China's largest company by total valuation as of Monday's close, ahead of tech giant Tencent and banks China Construction Bank and Agricultural Bank of China.