An overview of the decline in Samsung and SK Hynix shares in response to new rules regarding semiconductor shipments to China.
Share Decline
At the time of publication, Samsung shares slid more than 3% to 67,600 KRW, while SK Hynix shares dropped nearly 5% to 256,250 KRW.
New U.S. Regulations
The U.S. Department of Commerce announced it would not grant licenses for expanding capacities or upgrading technology at fabs in China. Samsung produces about 40% of its NAND flash memory in Xi'an, while SK Hynix manufactures 20% in Dalian.
Corporate and Government Reactions
Samsung Executive Chairman Jay Lee stated that the company will need to adapt to the new regulations. The South Korean government emphasized the importance of stability in the semiconductor supply chain and promised ongoing dialogue with the U.S. China's commerce ministry called the U.S. ruling an infringement on the legitimate rights of its enterprises.
The situation surrounding Samsung and SK Hynix shares highlights the importance of international trade and the implications of new regulations for the global semiconductor market.
