Samsung to break ground on second Texas chip fab in November

South Korea's Kospi index fell 7.57% on Thursday, its worst day since July, driven by declines in Samsung Electronics and SK Hynix, which make up over a third of the index. The drop was triggered by U.S. inflation data and concerns about AI-related debt financing. The index has fallen over 20% from its June peak, entering a bear market. Trading was halted due to circuit breakers, and foreign investors continued selling. The market partially recovered on Friday, but analysts remain cautious.

Samsung Electronics' semiconductor workforce in Austin, Texas, decreased by 32% in 2025, with local operating expenditures dropping nearly 75%. Meanwhile, the company's nearby Taylor foundry is preparing to start operations by the end of 2026.

Asian currencies weakened against the US dollar due to higher-than-expected US inflation, with the Philippine peso hitting a record low and the South Korean won at a two-week low. South Korean stocks fell 8%, led by chipmakers Samsung Electronics and SK Hynix, which dropped 10% and 12% respectively. TSMC also fell 3%.

Chip stocks globally fell sharply, led by declines in SK Hynix, Samsung Electronics, Nvidia, and others, due to rising interest rate concerns and AI debt worries. Despite strong earnings from TSMC and ASML, the sector faced broad selloffs. South Korea's Kospi index dropped 7.6%, triggering a circuit breaker. TSMC reported a 41% revenue increase, while ASML raised its sales guidance.

Samsung Electronics shares fell 9.5% on Thursday, triggering circuit breakers in South Korea's stock markets. The decline was driven by concerns over Chinese chip competition, rising U.S. interest rates, and doubts about the AI boom. SK Hynix also dropped 11.1%, with foreign investors offloading 3.62 trillion won in shares. The Kospi index closed down 7.57%.

Samsung Electronics' stock fell 9.5% in a day, sparking controversy as some employees allegedly welcomed the drop to secure more shares in future performance-based payments. Investors protested, citing damage to shareholders. The company's stock price is down 43.9% from its June high, closing at 210,000 won. Employees receive shares based on the stock price at payment time, with lower prices yielding more shares.