SK Hynix, Samsung fall as U.S. pressure on chipmakers reports surface
SK Hynix and Samsung Electronics fall in Seoul after reports that U.S. officials pressed South Korean chipmakers and the government to invest in U.S. memory-chip production.
Asian stocks traded sharply lower at the time of writing, led by a 2.66% drop in South Korea’s KOSPI, while semiconductor heavyweights SK Hynix Inc — ADR (NASDAQ: SKHY ) and Samsung Electronics (OTC: SSNLF ) slid amid reports of increased U.S. pressure on Korean chipmakers to invest in American facilities.
South Korea Stocks Slide as SK Hynix Shares Tumble Late Monday, South Korea’s KOSPI fell 2.66% to 6,518.92, extending losses across the benchmark as semiconductor stocks came under pressure.
Shares of SK Hynix in Seoul dropped 5.03% to 1.587 million Korean won, while Samsung Electronics declined 2.92% to 249,500 won.
The sell-off also extended to U.S.-listed SK Hynix shares.
The company’s American depositary receipt fell 4.92% to $155.37 in Monday’s U.S. session and was down another 0.89% at $153.99 in after-hours trading, according to Pro.
Meanwhile, Japan’s Nikkei 225 fell 1.04% to 64,848.36.
Read Also: XRP Scam in South Korea Defrauds Investors of $19 Million US Pressures Korean Chipmakers Over American Investment. from South Korean outlet Chosun, U.S. officials pressed the South Korean government and local semiconductor companies to invest in U.S. memory-chip production and ensure stable supplies.
The reported pressure intensified after Seoul announced its KRW 800 trillion ($578.5 billion) Honam Semiconductor Mega Project.
Korean officials said Washington’s concern appears to center less on the domestic project itself and more on delays surrounding Korean companies’ planned investments in the U.S.
The discussions reportedly also took place during Trade Minister Kim Jeong-kwan’s four-day visit to the U.S.
The South Korean government has maintained that the semiconductor investment demands are separate from the $350 billion U.S. investment agreement reached between the two countries last year.
Seoul is expected to announce its first U.S. investment project in September.
US Futures Edge Higher as Oil Prices Slip Dow futures fell 3.00 points, or 0.01%, to 53,486.00, while S&P 500 futures rose 3.00 points, or 0.04%, to 7,672.75.
Nasdaq 100 futures gained 13.25 points, or 0.05%, to 29,119.00 as of around 8:45 p.m.
EDT.
In commodities, WTI crude oil fell 0.08% to $84.94 per barrel, while Brent crude declined 0.30% to $91.89 per barrel.
Natural gas futures slipped 1.11% to $2.751 per MMBtu.
Meanwhile, the U.S. dollar index, which tracks the greenback against a basket of currencies, stood at 98.973, down 0.01% on the day.
Iran Sanctions Add to Market Uncertainty Meanwhile, U.S.
Treasury Secretary Scott Bessent on Monday announced a new campaign targeting nearly 60 entities, individuals and vessels linked to Iran’s nuclear, missile, cyber and oil networks.
The measures also broaden sanctions exposure across digital assets, technology, gold, aviation and shipping, with foreign financial institutions facing potential penalties for helping Iran evade sanctions.
Iranian Finance Minister Ali Madanizadeh told state-run Islamic Republic of Iran News Network that Tehran is prepared for the measures and warned that Iran’s response could go beyond defense, CNN reported on Monday. "Apparently, (the US) has now decided to try another failure," Madanizadeh stated.
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Read Also: Iran Vows ‘Not a Single Drop Of Oil’ Will Flow Through Strait Of Hormuz, Persian Gulf Amid Trump’s Economic Restrictions—Former General Warns US Has ‘Permanently’ Lost Access To Bases Photo: Samuel Boivin on Shutterstock.com