[Special Stocks] Samsung Electronics and SK Hynix Plunge Amid US Consideration to Strengthen Trade Restrictions on China

Samsung Electronics and SK Hynix are on a downward trend from the early trading session. It is interpreted that investor sentiment has weakened due to news that the U.S. government is considering strengthening semiconductor-related trade restrictions on China. Amid this, former President Donald Trump’s critical interview on the 'CHIPS Act' has also heightened concerns.

As of 10:11 a.m., Samsung Electronics is trading at 85,700 KRW, down 1.15% (1,000 KRW) from the previous day. SK Hynix is also pointing to 212,500 KRW, down 3.63% (8,000 KRW) from the previous day.

According to foreign media, the U.S. is reportedly reviewing whether to apply the Foreign Direct Product Rule (FDPR) to Tokyo Electron, a Japanese semiconductor equipment company, and ASML from the Netherlands. The U.S. is said to have pressured the Japanese and Dutch governments to implement FDPR if they do not strengthen their own measures against China.

Meanwhile, on the 16th (local time), former President Trump said in an interview with Bloomberg Businessweek, "Taiwan is being given billions of dollars by the U.S. to build new semiconductor factories," adding, "Taiwan will build (factories in the U.S.) but will later bring them back to their own country." This was reportedly the first time Trump publicly criticized a country investing in the U.S.

Although former President Trump mentioned Taiwan in the interview, concerns have arisen that a similar stance could be taken toward South Korea. This is because Samsung Electronics and SK Hynix receive a high subsidy rate of 14.5% from the U.S. government.