ON Semiconductor shares fell more than 10% on Tuesday. The decline mirrored a widespread global sell-off in technology stocks and a sharp drop in the Philadelphia Semiconductor Index.
A sell-off in Asian markets triggered the industry-wide downturn. Reports suggested South Korean manufacturer SK Hynix plans to slow its production expansion of high-bandwidth memory.
The news sparked investor concerns over a potential slowdown in the artificial intelligence boom. These fears led to significant losses for chipmakers across Asian, European, and U.S. markets.