South Korean chip suppliers rally as Samsung and SK hynix gains broaden

  • South Korean chip suppliers rallied after Samsung Electronics and SK hynix advanced.
  • SFA Semicon and TEMC each rose more than 20% on the Korea Exchange.
  • U.S. semiconductor stocks strengthened late last week before Korean suppliers rallied.

South Korean chip equipment, back-end and materials makers rallied on the 21st after Samsung Electronics and SK hynix gained, extending the momentum from U.S. semiconductor stocks late last week. Hana Micron rose more than 14% to above 44,000 won at around 1:30 p.m., while SFA Semicon and TEMC each gained more than 20%; several other suppliers also posted double-digit advances. Back-end companies handle semiconductor packaging and testing, while equipment and materials suppliers benefit when chipmakers expand production capacity. Samsung Electronics rose 5.17% to 274,500 won and SK hynix gained 1.08% to 1,877,000 won, helping lift the KOSPI 1.88% and the KOSDAQ 1.00%. The broader rally followed gains in U.S. semiconductor shares, including Micron and Nvidia, as well as a near-3% rise in the Philadelphia Semiconductor Index. Hana Financial Investment said equipment delivery delays reflected difficulties securing cleanrooms and components rather than weak demand, and expected DRAM and NAND prices to slightly exceed its earlier third-quarter forecasts. Analysts said expectations for sustained capital spending are strengthening the investment case for both front-end and back-end companies.

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