Samsung Electronics and SK Hynix shares fell significantly amid a global decline in tech stocks, losing over 9%. This downturn impacted South Korea's benchmark Kospi index due to the heavy weighting of these semiconductor firms.
On Thursday, shares of Samsung Electronics dropped 9.06% and SK Hynix fell 14.57%, contributing to a broader drop in South Korea's Kospi index.
This follows a significant decline in the Nasdaq Composite index, which has seen heavy selling in tech stocks including major players like Micron Technology and Nvidia.
Both companies are key players in the semiconductor industry, which has faced increased volatility in recent weeks.
Their combined market performance significantly influences the Kospi, which has seen these firms grow from 25% of its total weight to nearly 50% by mid-2023.
The downturn also affected other Asian tech stocks, with notable declines in companies like Semiconductor Manufacturing International Corporation and Huawei's chip foundry, Hua Hong Grace.
The trend mirrors a broader regional selloff, emphasizing the interconnected nature of global tech markets.
Despite the current market turmoil, SK Hynix announced plans for substantial investment in South Korea, including 100 trillion won ($64.37 billion) for new chip manufacturing plants.
These investments aim to enhance production capacity and expand technology in the semiconductor sector, targeting operational starts as early as 2029.
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Samsung Electronics and SK Hynix shares fell significantly amid a global decline in tech stocks, losing over 9%. This downturn impacted South Korea's benchmark Kospi index due to the heavy weighting of these semiconductor firms.