Shares in Japan’s chip-related companies, including Advantest, Tokyo Electron, and Renesas Electronics, continued to decline for a second day as the emergence of Chinese startup DeepSeek’s AI technology raised concerns about the United States’ leadership in the field. Softbank Group, which owns chip designer Arm, also experienced a 5.26% drop, while data center-related shares like Furukawa and Fujikura fell significantly. DeepSeek’s innovative large language and reasoning models have challenged U.S. dominance in the semiconductor industry, prompting speculation about potential regulatory changes and the impact on global competitiveness.
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