On November 4, market concerns that the AI industry could face stricter regulation—driven by strong Democratic performances in the US midterm elections—sent Japanese and South Korean stock markets tumbling, with chipmaker shares plunging sharply. South Korea's KOSPI index fell as much as 3.7%, erasing earlier gains; Samsung Electronics dropped over 4%, and SK Hynix fell nearly 6%, the biggest drags on the index. Japan's Nikkei 225 fell 4% during the session, and Taiwan Weighted Index dropped about 2.6%. Investors believe that strong Democratic results may prove unfavorable to high-growth technology and AI companies, potentially hindering US data center expansion and clouding the demand outlook for chipmakers and other hardware suppliers in South Korea, Taiwan, China, and Japan—key players in US AI infrastructure construction.