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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] Semiconductor Stocks Adjusted Due to Donald Trump's Stance on Strengthening Tariffs and Opposition to the CHIPS Act, but Limited Impact Expected on Samsung Electronics and SK Hynix.
Despite semiconductor stocks being adjusted due to Donald Trump’s stance on strengthening tariffs against China and opposition to the CHIPS Act, an analysis suggests the impact on Samsung Electronics and SK Hynix will be limited.
Hwang Joon-tae, a researcher at Korea Investment & Securities, stated, "During Trump’s tenure in 2019, Samsung Electronics (005930) and SK Hynix (000660) only sold semiconductors produced at their Xi'an and Wuxi fabs to Chinese customers, while all products for American customers were sourced from Korea. Therefore, even if Trump is re-elected and tariffs on China increase, the direct impact on memory semiconductors will be minimal."
Hwang noted, "There is an indirect risk factor where reduced exports from China could lead to lower GDP growth in China, potentially reducing IT demand and semiconductor demand. However, it’s important to note that this semiconductor cycle is driven by server demand related to AI, rather than smartphones or PCs, and this demand is mostly generated in the U.S."
He added, "Additionally, in this upcycle, the benefit comes more from price (P) increases due to supply constraints rather than set (Q) demand. Since the price rise is maintained through supply control rather than increased demand, any demand contraction should have a limited impact."
With no significant events expected before SK Hynix’s Q2 earnings announcement next week, short-term adjustments due to macro uncertainties may continue. Hwang forecasted, "As SK Hynix and other IT companies announce their earnings, the sector is likely to see a recovery in investor sentiment due to positive earnings impacts. It is crucial to focus on earnings stocks during periods of market uncertainty. Increasing exposure to Samsung Electronics and SK Hynix, which have continued earnings momentum post-Q2, is recommended.
알파경제 Kim Minyoung (kimmy@alphabiz.co.kr)
