HONG KONG - Asian technology stocks slumped after Apple raised prices for its products, stoking concern that rising component prices will curb demand for devices and eventually slow the memory chip rally that has powered much of the AI trade.South Korean memory chip giants SK Hynix and Samsung Electronics both slid more than 8 per cent. Their Japan-based peer Kioxia Holdings sank as much as 12 per cent. Among Apple’s Asian suppliers, Taiwan’s MediaTek fell as much as 10 per cent, while Hon Hai Precision Industry Co. dropped 3.7 per cent. South Korea’s chip-heavy market was hit by a second trading suspension this week as the Kospi tumbled as much as 9 per cent, while Japan’s Nikkei index sank 4.7 per cent and Taiwan’s TAIEX index tumbled 3 per cent. Nasdaq 100 futures dropped 1.2 per cent while S&P 500 futures slid 0.6 per cent.Singapore’s Straits Times Index was down 1.1 per cent at 1.06pm.Investors are reassessing whether soaring memory prices, driven by relentless AI demand, may begin to choke off spending by raising costs for electronics makers and consumers alike. Apple’s price hikes offered one of the clearest signs yet that the industry’s pricing power may come at the expense of future demand, prompting a broad recalibration across AI-linked semiconductor stocks.“Markets are no longer treating memory strength as an automatic positive for the whole AI trade,” said Charu Chanana, chief investment strategist at Saxo Markets in Singapore. “It validates AI infrastructure demand, but it also raises the cost of building and consuming AI.”“The risk is that a stronger memory cycle today starts to slow the broader AI trade tomorrow. And the market is starting to price that,” she said.Apple on June 25 raised prices of all Macs, iPads, home devices and the Vision Pro, seeking to offset cost hikes caused by a shortage of memory chips and storage. The company’s shares fell 6.1 per cent, their biggest drop since April 2025.Later on June 25, Microsoft announced a third price increase for its Xbox video-game consoles in another example of the component shortage crisis that has driven up the cost of consumer tech products.Sentiment toward Asian tech shares was also hurt by news that OpenAI may hold off on an initial public offering until 2027. SoftBank Group’s stock fell as much as 14 per cent in Tokyo, on concern the company which is a prominent backer of OpenAI, may face delayed returns.“OpenAI’s potential IPO delay reflects the impact of recent tech stock volatility on retail enthusiasm,” said Fabien Yip, market analyst at IG International. “This creates a reality check on AI valuations, directly hitting SoftBank and overspilling to the broader tech sector.”For investors in South Korea, swings this week are yet another reminder that the market’s fortunes remain closely tied to the AI trade. Sharp moves in semiconductor heavyweights have made the Kospi behave more like a single technology stock than a diversified index. Meanwhile, Samsung and SK Hynix are preparing to announce hundreds of billions of dollars worth in new investments on June 29, according to local media reports.“While US chipmakers are finding a floor on localised corporate updates and domestic economic resilience, Asian semis – the heavy-lifting infrastructure and hardware backbone of the AI supply chain – are bearing the brunt of the regional risk-off unwind,” said Francis Tan, Asia chief strategist at Indosuez Wealth in Singapore.