Samsung Electronics and SK Hynix both saw their shares drop by 6-8% in early trading. This decline follows a weak performance of U.S. semiconductor stocks and concerns over China's semiconductor equipment development and ongoing investment controversies surrounding Nvidia, which have dampened investor sentiment.
As of 9:08 a.m. on the Korea Exchange, Samsung Electronics was trading at 237,000 won, down 6.69% from the previous trading day, while SK Hynix fell 8.92% to 1,654,000 won.
Despite a favorable macroeconomic environment in the U.S. stock market, driven by expectations of negotiations between the U.S. and Iran leading to lower oil prices and bond yields, semiconductor stocks remained weak. Nvidia's shares fell by 5%, ASML dropped 5.8%, Micron decreased by 2.3%, and SanDisk plummeted by 11%.
Market analysts suggest that news of Chinese companies developing DUV (Deep Ultraviolet) lithography equipment has raised concerns about the overall semiconductor sector. If Chinese memory manufacturers adopt domestic DUV equipment, it could alleviate supply bottlenecks and expand production capacity, intensifying global memory competition.
However, industry experts note that the manufacturers and performance specifications of the new equipment have not been clearly disclosed, and initial production volumes are limited, indicating that the technological gap with ASML remains significant.
The ongoing investment controversy surrounding Nvidia is also cited as a factor contributing to weakened investor sentiment. Questions about the sustainability of investments within the AI ecosystem have led to profit-taking across AI and semiconductor-related stocks.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Since July, semiconductor stocks have undergone significant corrections, leading to weakened investor sentiment. The market is reacting sensitively to news about Chinese DUV equipment production. In the short term, volatility may continue due to competition issues from China and the investment controversy, but mid-week earnings reports from domestic semiconductor firms and U.S. hyperscalers could provide a turning point."
* This article has been translated by AI.
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