Semiconductor stocks drop sharply on fears of slowing AI capital spending

Shares of major semiconductor foundries like United Microelectronics, Taiwan Semiconductor Manufacturing, and GlobalFoundries fell sharply due to concerns over slowing AI-related capital expenditures. The Wall Street Journal reported that top tech firms have $3 trillion in off-balance-sheet AI commitments, raising doubts about future foundry demand and causing a sector-wide selloff. Rising long-term Treasury yields also pressured high-growth tech stocks, including semiconductor manufacturers. Investors are watching if the foundry sector stabilizes or continues to decline amid these uncertainties.