South Korean media: US restricts chip equipment shipments to China ... Samsung Electronics, SK Hynix stock prices fell at the opening

Recently, the U.S. government announced the cancellation of the preferential policy that allowed multinational chip companies to ship U.S.-made chip equipment into China. Affected by this, the stock prices of major South Korean chip companies such as Samsung Electronics and SK Hynix fell in the early stages of the opening.

As of 9 a.m. on the 1st, Samsung Electronics' stock price in the securities market fell by 2.15% compared to the previous trading day. SK Hynix also fell by 11,000 KRW (−4.09%, approximately RMB 56.32) from the previous trading day, and was trading at 258,000 KRW (approximately RMB 1,320.96).

On August 29, the U.S. Department of Commerce issued a federal notice stating that it had abolished the comprehensive licensing system allowing companies such as Intel, Samsung Electronics, and SK Hynix to ship U.S.-made chip equipment into China.

In October 2022, the United States effectively banned chip equipment shipments to China to curb its chip industry, allowing only enterprises with "Verified End User (VEU)" qualification to import U.S.-made chip equipment without a license. Previously, Samsung Electronics and SK Hynix have been operating production facilities in China under VEU qualifications. However, after the cancellation of this qualification after three years, the two companies will have to apply for individual licenses whenever they need to import U.S.-made equipment into China in the future.

At the same time, news that Alibaba has independently produced artificial intelligence (AI) chips has also put pressure on the stock prices of South Korean chip companies. Alibaba is the largest cloud computing company in China and was one of the main customers of NVIDIA, a leading company in the AI chip field. However, affected by U.S. government regulations, there are rumors that Alibaba has recently begun to independently develop and produce new AI chips domestically.

On that day, the KOSPI opened at 3,164.58 points, down 21.43 points (-0.67%) from the previous trading day, and continued to decline. The KOSDAQ opened at 795.30 points, down 1.61 points (-0.20%) from the previous trading day.

Source: Chosun Ilbo

Original article: www.toutiao.com/article/1842049332028423/

Statement: This article represents the personal views of the author.