Samsung, SK Hynix shares drop after US tightens chip export rules to China
Shares in Samsung Electronics and SK Hynix fell on Monday after the United States revoked authorizations that allowed the South Korean chipmakers to use U.S. semiconductor manufacturing equipment in China. The restrictions will take effect in 120 days.
The two companies dominate the global memory chip market, holding about 70% of the DRAM market—used in data centers and artificial intelligence—and 54% of the NAND market. Analysts said the impact will vary: SK Hynix, with 30–40% of its DRAM and NAND production in China, saw shares slide 5%, while Samsung, whose China-based NAND production accounts for roughly a third of its output, fell 2.6%, News.Az reports, citing Reuters.
Ryu Young-ho, senior analyst at NH Investment & Securities, said the short-term effect is expected to be limited. “Samsung and SK Hynix have planned their new production lines and processes primarily in South Korea, while maintaining the status quo in China,” he said. However, he added that the U.S. move could benefit competitors like Micron, which rely less on Chinese production.
In response, SK Hynix said it would maintain close communication with both the Korean and U.S. governments to minimize business disruption, while Samsung declined to comment. Analysts also suggested the companies may expand partnerships with Chinese equipment makers to stabilize operations if U.S. machinery is not available.
Other South Korean chip suppliers also saw declines. Hana Micron fell 2.2% and Hanmi Semiconductor dropped 4.8%, amid concerns over broader industry impacts.
The restrictions come as U.S. President Donald Trump has threatened a 100% tariff on semiconductor imports. While Samsung and SK Hynix may be exempt if investing in U.S. production, the tariffs could disrupt the highly interconnected global supply chain.
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