Micron and SK Hynix stocks fell in early trading on Tuesday. Shares of US-based Micron Technology fell 4%, while SK Hynix shares dropped 5% as memory-chip stocks faced a global sell-off. The selling pressure increased after South Korea’s benchmark KOSPI index plunged.
Chinese memory-chip maker ChangXin Memory Technologies (CXMT) announced progress on a new memory-cell design. Samsung and SK Hynix shares suffered bigger losses in South Korea. China’s CXMT is at the centre of the latest memory-chip sell-off. The product will use the company’s new memory-cell architecture. Its planned introduction could increase competitive pressure on Samsung, SK Hynix and Micron in the global memory-chip market.
SK Hynix shares fell 10%, while Samsung Electronics shares declined 7%. CXMT plans to launch a new server memory product by the end of 2026.
Both stocks extended their losing streaks to five consecutive trading sessions, according to Yahoo Finance. The technology is engineered to pack more storage into less physical space, raising concerns about increased competition for established memory-chip companies, according to Yahoo Finance.
Memory chip competition grows
Samsung, SK Hynix and US-based Micron together account for roughly 90% of the global dynamic random-access memory (DRAM) market. All three memory-chip makers reached $1 trillion valuations over the summer. The new technology threatens the position of the world’s biggest memory-chip makers. Investors are worried about stronger competition in the memory-chip industry. CXMT’s announcement comes as investors assess the potential impact of a new competitor on established manufacturers. The companies were major beneficiaries of the AI investment boom over the past year.
CXMT’s progress could intensify competition in a market currently dominated by these three companies, according to Yahoo Finance. The development has contributed to the ongoing sell-off in memory-chip stocks, according to Yahoo Finance. However, their stocks have since fallen from their respective all-time highs, according to Yahoo Finance.
