Major drop in stock markets of various countries on news of Chinese chip progress

This information was reported by AFP news agency.

According to the report, at the start of the day, Japan's main stock index Nikkei-225 fell about 4 percent to 62,351.73 points. At the same time, South Korea's KOSPI index fell 7.54 percent to 6,246.53 points.

Shares of South Korean tech company Samsung Electronics fell more than 7 percent. Similarly, shares of SK Hynix, one of the world's largest memory chip manufacturers, lost about 7.5 percent.

According to market analysts, the news of rapid progress in China's semiconductor technology has created fears of new competition in the global technology sector. As a result, investors are leaning towards selling technology sector shares, which is having a negative impact on the market.

Tech news outlet The Information has reported that China's company Shanghai Yuliangsheng is working on making deep ultraviolet (DUV) lithography machines.

DUV lithography technology is considered one of the most important technologies for producing advanced semiconductors and computer chips. Analysts believe that if China succeeds in this technology, competition in the global chip industry will intensify and there could be a significant change in the long-standing technological balance.