[Special Stock] Samsung Electronics Drops Over 1% Amid US HBM Export Interest Rate Measures...

Samsung Electronics is showing weakness on the 4th following news of the United States' export controls on high-bandwidth memory (HBM). Although the government expects the impact of the HBM export control measures on domestic companies to be minimal, the securities industry predicts that the U.S. export regulations will exert short-term downward pressure on semiconductor stocks.

As of 10:53 a.m. on the same day, Samsung Electronics was trading at 52,900 won, down 1.31% (700 won) from the previous trading day.

Earlier, the U.S. government announced additional sanctions banning the export of high-bandwidth memory (HBM) to China. These export control measures will take effect from January 1 next year (U.S. local time). The government expects the impact on domestic companies to be minimal, citing the low proportion of HBM exports to China among semiconductors produced in Korea. SK Hynix exports a significant amount of HBM to U.S. company Nvidia, while Samsung Electronics exports mainly lower-spec products to China.

However, the industry is concerned that, in the mid to long term, the Korean semiconductor ecosystem will inevitably be affected. In particular, semiconductor stocks in the Korean stock market are expected to experience short-term declines due to export regulations.

Hwang Junho, a researcher at Sangsangin Securities, stated in a report on the day, "Although the possibility of HBM exports to Nvidia has increased, Samsung Electronics, which has a relatively larger proportion of HBM exports to China compared to SK Hynix, is expected to suffer significant damage from these export regulations, failing to reduce weekly losses. However, considering that most current HBM demand is from the U.S., especially Nvidia, rather than China, the impact of the export regulations will be limited to short-term downward pressure."