Semiconductor Stocks Waver Despite Record Exports, Why? - Businesskorea

Despite record-high semiconductor exports, stock markets in South Korea are showing signs of volatility. This divergence highlights growing concerns among investors regarding the future outlook of the... Read original →

While semiconductor exports hit record highs, South Korean stock markets are showing signs of instability, signaling investor concerns over the sector's future. Technologically, the global chip supply chain is increasingly concentrated in regions like Taiwan, China, and South Korea, with TSMC maintaining a 73% foundry share, reinforcing its dominance. Companies such as Samsung and SK Hynix are using share buybacks to stabilize investor sentiment. However, rising interest rates are squeezing leveraged retail investors, adding pressure. Geopolitical tensions, particularly U.S. restrictions on China’s power grid, have inadvertently benefited Korean manufacturers. Looking ahead, if the U.S.-China tech decoupling intensifies, Korean firms may face higher operational costs, but their investments in advanced process nodes could yield long-term competitive advantages.