Chey Tae-won to Chair SK hynix's U.S. AI Investment Arm

SK Hynix shares dropped 7.2% to 296,000 won on Thursday due to a broader sell-off in South Korean semiconductor stocks. The decline was driven by concerns over U.S. AI regulations and delayed chip equipment export licenses for China. Weak earnings from Arm and Qualcomm also contributed to the downturn. Investors sold off AI-exposed chipmakers, including SK Hynix, on fears of reduced demand for high-bandwidth memory.

SK Hynix (000660) shares dropped 7.5% due to foreign selling amid AI infrastructure concerns. Top traders at Mirae Asset Securities bought the dip, also purchasing Samsung Electro-Mechanics (009150), which fell 10.31%. Analysts maintained 'buy' ratings, citing undervaluation and growth prospects. Samsung Electronics (005930) was also a top net purchase, with positive views on its HBM business.

South Korean semiconductor stocks, including Samsung Electronics and SK Hynix, plunged after U.S. midterm elections, triggering a sell-side circuit breaker on the KOSPI. The KOSPI index fell over 5%, with Samsung and SK Hynix dropping 6% and 9% respectively. The selloff was attributed to Democratic wins and subsequent market volatility in U.S. futures.

SK Hynix shares dropped 7.74% on Thursday, while Samsung Electronics fell 5.50%, driven by fears of tighter US AI rules under a Democrat-controlled Congress. The KOSPI index declined 1.98%. SK Hynix is down 29.86% in a month but up 97.70% year-to-date. Goldman Sachs sees current chip valuations as overly pessimistic.

The US Commerce Department is delaying export licenses for SK Hynix to ship chipmaking equipment to its Dalian, China plant, complicating its $45B plan to build memory plants in New York. SK Hynix argues increased Dalian production would fund the US project, but Commerce opposes licensing equipment for Chinese plant expansion. Solidigm, SK Hynix's US subsidiary, is negotiating licenses and exploring alternative funding, including a potential IPO.

Samsung Electronics (005930) and SK Hynix (000660) rose 3.19% and 4.79% respectively in early trading on the 4th. Analysts cite a rebound in U.S. tech stocks, improved memory market expectations, and bargain hunting as reasons. Both companies reported strong Q3 2026 earnings in their memory businesses, driven by AI demand.