On Tuesday, global semiconductor stocks plummeted, erasing nearly $300 billion in market value. This decline was primarily driven by fears surrounding a proposed 'citizen dividend' tax on profits from artificial intelligence (AI) companies, as suggested by Kim Yong-beom, a South Korean government policy chief. Major chipmakers, including Samsung and SK Hynix, saw their shares fall by approximately 4%, while other companies like Nvidia, AMD, and Micron also experienced declines. Micron's shares dropped by 2.3%, SanDisk by 3.3%, Nvidia by 0.75%, and AMD by 2%. The South Korean stock market was significantly affected, with its main index falling over 5% before recovering to a 2.3% decline after officials clarified that the tax proposal was not an official government plan. Deutsche Bank analyst Peter Sidorov noted that the market's reaction was influenced by the uncertainty surrounding the proposed tax, impacting tech sentiment.