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2026-11-05 17:26:27
[South Korean Chip Stocks Plunge, KOSPI Triggers Circuit Breaker] ⑴ South Korean stocks plunged on Thursday, with the KOSPI index falling by approximately 5%, triggering a sell-side circuit breaker during trading. Chip stocks were particularly hard hit. ⑵ Samsung Electronics fell by about 8%, and SK Hynix by about 10%. These two heavyweight stocks together account for about 50% of the KOSPI's weighting, significantly dragging down the index. ⑶ The decline spread to the entire technology sector, with Samsung SDI plunging by about 15%, and many other semiconductor-related stocks experiencing significant drops. ⑷ This sell-off followed disappointing earnings reports from US chip designers Qualcomm and Arm, reigniting concerns about the semiconductor industry's growth prospects. ⑸ Weak smartphone demand, rising storage costs, and uncertainty surrounding the returns on large-scale AI investments have collectively increased pressure on chip manufacturers and equipment suppliers. ⑹ Investors are also increasingly worried about potential delays in US data center construction, which could weaken future demand for memory chips. ⑺ Affected by the sharp decline in heavyweight stocks, the KOSPI has fallen by about 42% from its June high, reaching its lowest level since April. (8) Market analysts believe that the previous bubble in chip stocks is rapidly deflating, and the sector's valuation is facing a repricing. (9) Going forward, attention should be paid to the impact of US technology company earnings guidance and data center construction progress on sentiment towards South Korean chip stocks. (10) Overall, South Korean chip stocks are under significant short-term pressure, and market divergence regarding the semiconductor cycle outlook has increased.
