South Korean and Japanese chip stocks fell on October 19 after China-based AI startup DeepSeek released an updated model over the weekend.

The company said the model is faster and leaner, raising investor concerns that AI systems may need less memory.

South Korea’s Kospi fell as much as 3.2%. Memory chipmakers Samsung Electronics and SK hynix each dropped more than 4% before trimming losses.

Japan’s Nikkei 225 slid about 2%, extending a broader selloff after US chip stocks fell for an eighth straight session on October 16 amid concerns over the cost of AI infrastructure.

Life Asset Management CEO Kang DaeKwun said uncertainty over funding for US companies’ AI projects was driving market jitters.

The Kospi was coming off its worst weekly performance since October 2008.

🔗 Source: Bloomberg

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