Japan chip stocks fall as DeepSeek's challenge to U.S. AI dominance raises worries for Asian tech firms

Japanese chip-related stocks, including Advantest, Tokyo Electron, and Renesas Electronics, fell as Chinese AI startup DeepSeek challenges America’s global AI leadership, impacting Asian tech companies in the U.S. AI value chain. Softbank Group, owner of Arm, dropped 5.4% after CEO Masayoshi Son’s plans to invest in the U.S. Shares of data center-related firms like Furukawa and Fujikura also declined due to concerns over China’s rapid progress in chip technology, raising doubts about Japan’s ability to compete at scale.

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