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Chipmakers Tumble on Warnings of Worst Downturn in a Decade

  • Semiconductor index sank 4.6% with all 30 members falling
  • “Every end market to experience a correction,” Citigroup says
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Micron CEO on US Production Investment, Sales Forecast
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Semiconductors stocks tumbled after Micron Technology Inc. became the latest chipmaker to warn about slowing demand, triggering concern the industry is heading into a painful downturn. 

In the US, the Philadelphia semiconductor index sank 4.6% on Tuesday with all 30 members in the red, its biggest fall in about two months. In Asia, chip stocks from Taiwan Semiconductor Manufacturing Co. to Samsung Electronics Co., SK Hynix Inc. and Tokyo Electron Ltd. slumped. Investors are growing increasingly skittish the notoriously cyclical industry is hurtling toward a prolonged slump after years of widespread shortages that led to heavy investments in capacity.