Samsung Electronics and SK Hynix saw their shares drop by around 5% in early trading as semiconductor stocks weakened on the New York Stock Exchange. Concerns over intensified competition following the announcement of next-generation memory products by Chinese semiconductor firms have dampened investor sentiment.
As of 9:07 a.m., Samsung Electronics was trading at 239,000 won, down 4.59% (11,500 won) from the previous trading day. At the same time, SK Hynix recorded a 5.05% decline, trading at 1,524,000 won, down 80,000 won.
Related stocks also experienced declines. Samsung Electronics' preferred shares fell 5.03% to 177,400 won, while SK Square, which holds shares in SK Hynix, dropped 6.91% to 916,000 won.
The drop in domestic semiconductor stocks is attributed to the weakness observed in the semiconductor sector on the U.S. stock market the previous night.
On October 12 (local time), the New York Stock Exchange closed mixed amid semiconductor stock weakness and rising international oil prices. The Dow Jones Industrial Average rose 0.38% to 51,850.55, while the S&P 500 fell 0.06% to 7,807.24, and the tech-heavy Nasdaq Composite dropped 0.44% to 27,245.90.
The semiconductor sector saw a notable decline, with the Philadelphia Semiconductor Index falling 2.67%. Major semiconductor companies, including Nvidia, AMD, and Micron Technology, also reported losses.
Concerns were heightened by the announcement from Chinese memory semiconductor company Changxin Memory Technology (CXMT) regarding the upcoming release of next-generation server memory products by the end of the year. The rapid pace of technological development by Chinese firms raises fears of intensified competition in the global memory semiconductor market.
Additionally, rising international oil prices and concerns over the overvaluation of AI-related technology stocks have increased market caution. The U.S. stock market volatility index (VIX) rose 2.49% to 15.21.
The recent optimism surrounding increased demand for AI semiconductors has led to strong performance among domestic semiconductor giants. However, fears of intensified global competition and weakness in U.S. tech stocks have prompted profit-taking among investors.
* This article has been translated by AI.
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