Asian tech stocks fell on Tuesday as the selling sentiment in U.S. semiconductor stocks spread to regional markets, with concerns that funding for artificial intelligence and intensifying competition were weighing on sentiment.

South Korean chip giant SK Hynix saw its stock price fall by more than 8%, and the company is a major supplier of high-bandwidth memory chips used in artificial intelligence applications; its competitor Samsung Electronics saw a decline of 6.7%, with both falling to their lowest levels since August.

In Japan, the stock price of SoftBank Group, a giant in technology investment, fell by 8.8%. The group has a significant exposure to the global AI industry, which led to a overall decline in Japanese semiconductor and electronics stocks.

Tokyo Electron, a major supplier of chip manufacturing equipment, fell by 6.75%, and Advantest, a manufacturer of semiconductor testing equipment, fell by 5.65%. Other Japanese tech stocks also came under pressure. Lasertec fell by 4.94%, Disco fell by 4.69%, and Renesas Electronics fell by 5.64%.

Previously, Wall Street tech stocks were weak on Monday, with the Nasdaq Composite Index falling by 0.44%. Micron Technology, a U.S. memory chip manufacturer, declined by 3.9% as investors assessed the impact of increased competition from China's ChangXin Memory Technology Co., Ltd. ( CXMT ); the latter had previously reported progress on a new chip structure.

The CEOs of Intel and Broadcom have both warned that although the demand for computing infrastructure still exceeds supply, access to funding could become a major obstacle to the artificial intelligence boom.

Investors are still paying attention to this week's dense corporate financial reports and U.S. inflation data, which may provide new clues for interest rate prospects.