Global technology hardware stocks faced a sell-off on Thursday, with Asian chipmakers following Wall Street's decline. Investors are increasingly concerned that rising borrowing costs could drag down the substantial capital expenditures required for AI infrastructure, putting pressure on tech companies that have benefited from the AI investment boom.

South Korean chip giant SK Hynix saw its shares plummet over 8%, while rival Samsung Electronics fell 7.1%. Other South Korean chip-related stocks also came under pressure, with LG Innotek down 8.1%, Seoul Semiconductor down 7.7%, and Samsung SDI down 6.8%.

In Japan, tech investment giant SoftBank Group tumbled 7.9%, semiconductor testing equipment maker Advantest fell 6.9%, chip manufacturing equipment supplier Tokyo Electron dropped 5.4%, and Renesas Electronics declined 5.4%.

The sell-off followed a dismal performance on Wall Street in the previous trading session, after stronger-than-expected US inflation data fueled market concerns that the Federal Reserve might further raise interest rates, leading to tech stocks spearheading the broader market decline.