South Korean stocks slide as DeepSeek model stokes memory chip demand fears

Samsung and SK Hynix took the hit after DeepSeek claimed its new model needs far less high-bandwidth memory South Korean stocks fell as investors worried about two things: demand for memory chips, and how much longer the money for AI keeps flowing. The biggest casualties were the country’s chip giants, Samsung Electronics and SK Hynix. The trigger came from a Chinese AI lab that says it can do more with less. The spark was DeepSeek ’s V4.1-Flash model, released on September 10, 2026. Its pitch was efficiency, specifically in high-bandwidth memory, or HBM. HBM is the premium memory stacked next to AI accelerators so they can be fed data fast. Samsung and SK Hynix together dominate global supply.

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