U.S. Revokes Semiconductor Equipment Authorisation: Impact on Samsung and SK Hynix
Samsung Electronics and SK Hynix shares fell after the U.S. revoked their authorisations to secure semiconductor equipment for China. This impacts a significant portion of their DRAM and NAND production, but the companies indicate minimal short-term effects as their new plans focus mainly on South Korea.
Shares in leading South Korean firms Samsung Electronics and SK Hynix saw a decline on Monday, following the U.S. decision to revoke authorisations that permitted them to obtain semiconductor manufacturing equipment for their Chinese plants.
This decision, intended to take effect in 120 days, poses concerns for the companies as a substantial portion of their DRAM and NAND production is rooted in China. Samsung's shares fell by 2.3%, while SK Hynix lost 4.4%, both trailing behind the benchmark KOSPI's 0.7% drop.
SK Hynix plans to engage with both the Korean and U.S. governments to mitigate effects, while analysts believe the short-term impact will be cushioned by their production strategies focused mostly within South Korea.
- READ MORE ON:
- Samsung
- SK Hynix
- semiconductor
- China
- U.S. restrictions
- DRAM
- NAND
- production
- shares
- South Korea
Advertisement
ALSO READ
Epic Drama Unfolds at U.S. Open: Triumphs and Heartbreaks
Sydney Consulate Clash: Dramatic Arrest at Russian Gates
Dramatic Police Encounter Leads to Arrest of Vehicle Theft Suspects
Drama Unfolds at U.S. Open: Tennis Titans Face Off
Overnight Deportation Drama: Guatemalan Children's Fate Hangs in Balance
Google News