Direxion Daily Semiconductors Bull 3x Shares (SOXL) experienced a pre-market plunge of 7.37% on Wednesday, as the leveraged semiconductor ETF faced significant selling pressure.

The decline was primarily driven by concerns over chip inflation after TSMC announced plans to raise advanced and mature process wafer fabrication prices by up to 10% starting in 2027. The Taiwanese chipmaker also indicated additional surcharges of 10% to 15% on high-performance computing chip orders exceeding initial forecasts, aiming to offset rising costs from materials, manufacturing equipment, and overseas fab construction.

Wall Street strategists further warned that Korean DRAM export prices have surged 370% year-over-year, far exceeding historical cycle peaks, raising fears that chip inflation could pressure the sustainability of the current AI boom. Additionally, the ETF had surged nearly 15% in the prior session, making pre-market profit-taking a contributing factor to the pullback.