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DeepSeek's 'Memory Killer' AI Model Triggers Global Semiconductor Sell-off
Electronic Technology · Semiconductors · yonhap_finance · 2026-09-11
Chinese AI firm DeepSeek unveiled a low-cost model that drastically reduces HBM usage, sparking concerns over semiconductor demand and hitting global chip stocks.
What Happened
DeepSeek's New Model Launch: Chinese AI startup DeepSeek has introduced its 'V4.1 Flash' model, which significantly reduces the need for high-bandwidth memory (HBM) and storage. By optimizing KV cache and storage architecture, the company claims to have created a 'memory killer' that maintains competitive performance at a fraction of the cost.
Impact on Semiconductor Stocks: The announcement triggered a sharp decline in global semiconductor stocks, driven by fears of cooling demand for HBM. Major players including Micron, SK Hynix, and Samsung Electronics saw their share prices drop as investors reacted to the potential shift in hardware requirements.
Escalating Price War: DeepSeek's aggressive pricing of $0.15 per million tokens is intensifying competition in the AI sector. Analysts warn that this trend is pushing the industry into a 'death zone,' where commoditization makes it increasingly difficult for companies to maintain pricing power and profitability.
Market Outlook: Industry experts suggest that the rapid commoditization of AI models will continue to lower technical barriers, keeping downward pressure on prices. The ongoing token price war is expected to persist, potentially forcing a structural reassessment of demand for high-end memory chips.