Taiwan's memory chip stocks got crushed as a global tech selloff wiped out trillions in value and dragged major Asian markets down with it.

• Nanya Technology, Winbond, and Macronix all opened at their daily limit-down price, with several other memory makers following close behind.
• Analysts cut ratings and price targets on Nanya and Phison, pointing to weaker-than-expected demand recovery and growing doubts about AI spending.
• The selloff started after Democrats won control of both chambers of Congress in the US midterms, stoking fears of tighter AI regulation and slower data center construction.
• Nasdaq dropped over 5% and the semiconductor index had its worst day since March 2020, while Taiwan's main index briefly lost nearly 3,800 points and South Korea's market was briefly halted on an 8% plunge.
• Margin calls in Taiwan spiked almost 100-fold in a single day as leveraged investors got forced out of positions.

Outlook: Taiwan's president says the market reaction is expected after the US election but believes the AI buildout will continue long-term; markets may stay volatile until confidence in AI spending stabilizes.