Winbond Electronics shares fell sharply on July 13 following a dramatic sell-off in the memory chip sector. The downturn began in Seoul, where SK Hynix shares plunged more than 12%. Samsung Electronics also dropped 8%, triggering a market-wide circuit breaker in South Korea.
Escalating U.S.-Iran tensions and brokerage profit downgrades for SK Hynix fueled the panic. Arbitrage selling pressure also followed SK Hynix's recent U.S. ADR listing.
The volatility spread to the Taipei stock exchange, reversing early gains for memory stocks. Winbond opened higher but eventually fell more than half a daily limit. The decline impacted other Taiwanese memory firms, highlighting the sector's sensitivity to regional market sentiment and major industry players.