Japanese technology stocks slumped. A selloff in U.S. semiconductor stocks spread to Asia, CNBC reported on Thursday.

SoftBank shares fell 8.8 percent. Chip equipment maker Tokyo Electron dropped 9 percent and Advantest slid 9.4 percent. Semiconductor stocks also tumbled in the U.S. market a day earlier.

Kioxia fell more than 14 percent. A Texas federal jury on Wednesday found infringement of Viasat memory technology patents and ordered Kioxia to pay $229 million in damages.

South Korean markets were closed for a holiday. SK Hynix fell more than 11 percent a day earlier, and its U.S.-listed shares also dropped more than 13 percent.

Weakness in U.S. technology stocks also continued. The Nasdaq Composite Index fell 1.47 percent. VanEck Semiconductor ETF slid nearly 4 percent, and Arm Holdings fell more than 5 percent. Micron Technology, AMD and Broadcom each dropped more than 5 percent.

TSMC raised its annual capital spending forecast to $60 billion to $64 billion from $52 billion to $56 billion, but investors focused more on the burden of AI spending than on expanding investment. CNBC reported that this reflected concerns that it was becoming increasingly difficult to justify continuing an aggressive investment cycle.

Andrew Jackson, a strategist at Ortus Advisors, said TSMC earnings were not strong enough to support further gains in the sector and fueled concerns about excessive spending. He added that the selloff was a pullback from crowding into AI momentum stocks rather than a deterioration in long-term fundamentals.