Samsung Electronics, SK Hynix Fall as US Chip Selloff, CXMT HBM3E Move Weigh
Summary
- Major semiconductor stocks in South Korea, including Samsung Electronics and SK Hynix, fell together on weakness in US chip stocks and concerns over China's push to catch up in HBM technology.
- Declines in the US New York stock market, including the Philadelphia Semiconductor Index (SOX), Nvidia, Micron Technology, AMD, and SK Hynix ADRs, weighed on sentiment toward domestic chip shares.
- Concerns about intensifying competition in the memory chip market grew after reports that China's CXMT had begun small-scale production of HBM3E and could launch related products next year.
Forecast Trend Report by Period
Samsung Electronics Co. and SK Hynix Inc. led declines in major South Korean chip stocks early on September 2, as a selloff in US semiconductor shares and concerns over Chinese progress in high-bandwidth memory technology weighed on sentiment.
As of 9:10 a.m., Samsung Electronics was trading 3.07% lower at 253,250 won. SK Hynix fell 2.54% to 1.643 million won. SK Square dropped 4.87% to 1.016 million won, while Samsung Electronics preferred shares slipped 1.89% to 188,300 won. Samsung Electro-Mechanics declined 2.10% to 1.4 million won.
Weakness in US chip stocks overnight also pressured the local market. In New York trading on September 1, the Dow Jones Industrial Average closed down 0.79% at 52,766.88. The S&P 500 fell 0.71% to 7,631.47, while the Nasdaq Composite lost 1.03% to 26,099.77.
Semiconductor shares posted steeper losses. The Philadelphia Semiconductor Index fell 2.1%, while Nvidia ended down more than 1%. Micron Technology and Advanced Micro Devices each lost more than 2%. SK Hynix American depositary receipts also slid more than 2%.
Renewed military conflict between the US and Iran also hurt risk appetite, driving both oil prices and US Treasury yields higher. The yield on the 10-year Treasury rose to its highest level in 19 months, and market-implied odds of a 25-basis-point Federal Reserve rate increase in September climbed to 68.2%.
Oil prices jumped sharply as well. After the US carried out additional airstrikes against Iran and Tehran retaliated, November Brent crude rose 4.60% to settle at $94.65 a barrel. October West Texas Intermediate gained 5.20% to $90.22 a barrel.
News that ChangXin Memory Technologies, or CXMT, has started producing HBM3E in small volumes added to pressure on chip shares. The Information recently reported, citing multiple sources, that the Chinese memory maker was producing limited quantities of HBM3E, a fifth-generation HBM product.
Chinese fabless companies including Alibaba Group Holding Ltd.'s semiconductor unit T-Head and Cambricon Technologies were testing compatibility between their processors and CXMT's HBM3E, the report said. Products using CXMT's HBM3E could reach the market as early as next year. With the US having restricted exports of advanced HBM to China since 2024, investors are watching whether CXMT's progress in HBM3E production will intensify competition in the memory chip market.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.