Won's sharp rise drags down earnings outlook for Samsung Electronics, SK hynix

ASML, Intel (INTC), TSMC (TSM), and Samsung (005930.KS) collaborate to adopt High-NA EUV, a next-gen lithography tech. Samsung aims to use it in DRAM by 2028, TSMC by 2030. Intel is already using it. They also plan to jointly develop 12-inch photomasks. This follows China's advancements in DUV tech, which impacted ASML's share price.

Samsung Electronics (005930.KS) and SK Hynix (000660.KS) shares fell 3.5% and 2.2% respectively on 11 September 2026 after reports that DeepSeek's AI models require less high-bandwidth memory (HBM). Investors are concerned about potential reduced demand for HBM, but experts note that the efficiency gains are specific to certain workloads and do not necessarily indicate a lasting change in global HBM demand.

SK Hynix and Samsung Electronics shares fell 2.2% and 3.5% respectively after DeepSeek reduced high-bandwidth memory requirements in its AI models, raising demand concerns. Despite cheap valuations and strong earnings, volatility persists. Investors see this as a short-term setback, with long-term demand expected to rise from other AI models.

Samsung Electronics and SK Hynix shares fell over 3% after DeepSeek unveiled its V4.1-Flash AI model, which significantly reduces memory requirements. The model uses 890 bytes of cache per token, a quarter of its predecessor's usage. DeepSeek's innovation could impact memory demand, affecting companies like Micron and SanDisk. DeepSeek is preparing for a Shanghai listing and recently raised funding at a high valuation.

Hedge fund Situational Awareness, which suffered massive losses in July, has resumed trading by spending hundreds of millions on call options for AMD, SanDisk, and other AI-related companies. According to Nomura, a large investor paid at least $315 million in premiums for options on these and other assets. The fund's founder, Leopold Aschenbrenner, previously achieved high returns with aggressive AI supply chain bets but faced a liquidity crisis in July.

South Korea's KOSPI index fell 1.76% to 6,909.91 as Samsung Electronics and SK Hynix dropped over 3% each. The decline followed DeepSeek's announcement of an AI model requiring less high-bandwidth memory, raising concerns about demand for HBM chips. Both companies are down over 25% from their all-time highs, with high volatility affecting the KOSPI.