Foreign investors continued to offload Korean stocks for the seventh consecutive trading day on Wednesday, with selling concentrated on semiconductor shares.
Shares of the world’s two largest memory-chip makers - Samsung Electronics and SK hynix –are declining as brokerages and market trackers anticipate declining dynamic random access memory (DRAM) prices.
SK hynix reported a 57 percent rise in net profit to 1.99 trillion won in the second quarter on year on strong chip sales and a recovery in margins.
Pay rises continue at Korea's big companies and IT firms.
High-tech products quietly wow us without the slightest hint of emissions. The reality is very different, and much more worrying.
In October, SK hynix said it was buying Intel’s NAND component wafer business and the company’s Dalian NAND memory manufacturing facility in China for $9 billion. Intel will retain its Optane memory business, the Korean chip manufacturer said.
SK hynix, the world’s second largest memory chipmaker, is considering acquiring the remaining shares in Key Foundry, a local contract chipmaker. SK hynix already owns 49.8 percent.
Samsung Electronics will spend 171 trillion won ($151 billion) to ramp up production of microprocessors by 2030, an attempt to reduce its dependence on memory chips.
Chipmakers may not have the luxury of strategic ambiguity as the United States considers upping restrictions on the export of key components and technology to China.
One of the CEOs of SK hynix, the world’s second largest memory chip maker, has suggested more of a commitment to contract chip manufacturing, a major shift in the company’s business.