Major South Korean semiconductor stocks declined on Sept. 2 after U.S. chip shares fell and reports that China’s ChangXin Memory Technologies, or CXMT, had begun limited HBM3E production heightened competition concerns. Samsung Electronics fell 3.07% to 253,250 won by 9:10 a.m., while SK Hynix dropped 2.54% to 1,643,000 won. The Philadelphia Semiconductor Index fell 2.1%, with Nvidia down more than 1% and Micron Technology and AMD each losing more than 2%. Broader risk sentiment was also weakened by renewed U.S.-Iran military conflict, higher oil prices and Treasury yields, with market-implied odds of a 25-basis-point Federal Reserve rate increase in September rising to 68.2%. The Information reported, citing multiple sources, that CXMT was producing limited quantities of HBM3E, the fifth-generation high-bandwidth memory standard, while Chinese chip companies tested compatibility with their processors. Products using CXMT’s HBM3E could be released as early as next year, adding to concerns about competition in the memory-chip market after the U.S. restricted advanced HBM exports to China in 2024.