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The Nikkei 225 Index slumped by over 5% today, July 17, as the rout in Asian technology companies accelerated. It has now moved into a technical correction after falling by 12% from its highest point this year.

Artificial intelligence has transformed the semiconductor industry into one of the fastest-growing corners of the global economy. Investors have poured capital into chip designers, GPU manufacturers, and semiconductor foundries as demand for AI infrastructure continues to accelerate.