South Korean Quantum-Computing Stocks Surge After US Unveils $2 Billion Support Plan
Summary
- South Korean stocks tied to quantum computing surged after the U.S. Commerce Department unveiled plans to provide a total of $2 billion in support to nine related companies.
- Stocks in the quantum-computing theme, including KCS, Wooriro and Exatech, were broadly higher, with each posting double-digit gains.
- The U.S. government decided to provide support to IBM, GlobalFoundries and other companies through funding from the 2022 CHIPS Act, sending IBM shares up 12.43%% in New York trading overnight.
Forecast Trend Report by Period
South Korean stocks tied to quantum computing surged after the U.S. Commerce Department unveiled plans to provide a combined $2 billion in support to nine companies in the sector, including IBM and GlobalFoundries.
As of 9:19 a.m. on May 22, KCS was trading at 17,820 won, up 4,110 won, or 29.98%, from the previous session. Wooriro gained 26.44% to 10,950 won, while Exatech climbed 25.66% to 21,450 won.
Other stocks grouped under the quantum-computing theme also rallied, including Dream Security, up 21.94%, Woorinet, up 19.43%, Kowever, up 17.21%, Raonsecure, up 15.51%, Solid, up 13.91%, and Opticis, up 11.49%.
The rally followed reports that the U.S. government will support quantum-computing companies with funding from the CHIPS Act, the semiconductor law enacted in 2022.
IBM signed an agreement with the U.S. government to receive $1 billion to establish the first quantum semiconductor foundry in the United States. IBM shares jumped 12.43% in New York trading overnight.
Contract chipmaker GlobalFoundries is also set to receive $375 million.
Han Kyung-woo, Hankyung.com reporter, case@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
