Summary A sharp market selloff linked to AI disruption fears has wiped out nearly US$1 trillion in software stock value within days, as investors worry that artificial intelligence is starting to replace core business models , not just hype future growth. What’s Driving the Selloff Unlike past AI pullbacks driven by valuation concerns, this rout is fuelled by real-world evidence that AI tools may soon displace entire categories of software jobs and services . The trigger was Anthropic’s launch of an AI legal tool , which reignited fears that AI could rapidly move beyond coding into legal, sales, marketing, and finance functions . Key Market Impacts Nearly US$1 trillion wiped out from software stocks tracked by an iShares ETF in just seven days Software stocks at the epicentre , but selling has spread to hardware, services, lenders, and private equity Over US$17.7bn of US tech loans now trade at distresse...
Key Takeaways TSMC plans 3nm chip production in Japan , upgrading from earlier 7nm plans Investment may rise to ¥2.6 trillion , strengthening Kumamoto as a chip hub Political boost for PM Sanae Takaichi ahead of a snap election Supports AI demand and global supply-chain diversification Taiwan Semiconductor Manufacturing Co. is planning to produce advanced 3-nanometre chips in Japan , a significant upgrade from earlier plans and a political win for Prime Minister Sanae Takaichi as she pushes to rebuild the country’s semiconductor base. The world’s largest contract chipmaker intends to deploy cutting-edge technology at its second wafer fabrication plant in Kumamoto , according to people familiar with the matter. That would mark a step up from the initial roadmap to manufacture 7nm chips by late 2027 . To support the expansion, TSMC is expected to raise its total investment in the project to ¥2.6 trillion (US$17 billion) , Japanese medi...