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☆ SK Hynix reports record quarterly operating loss, but expects rebound later this year
▼ + stars: | 2023-04-26 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +3 min

In this article .FKRX300 Follow your favorite stocks CREATE FREE ACCOUNTwatch nowSouth Korean chipmaker SK Hynix has reported a record quarterly operating loss of 3.4 trillion won ($2.54 billion) for the first quarter of the year. This is a reversal from the 2.84 trillion won operating profit in the same period last year, and a larger loss from the the 1.89 trillion won operating loss the previous quarter. Employees stand in front of the SK Hynix Inc. logo displayed at the company's office in Seongnam, South Korea, on Monday, July 24, 2017. Shares of SK Hynix were higher by 1.75% in afternoon trade after surging as much as 3.5% earlier Wednesday. "We expect revenues to rebound in the second quarter after bottoming out in the first, driven by a gradual increase in sales volume," SK Hynix also said.

☆ Morning Bid: Cloud control - tech trumps banks
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +5 min

Alphabet (GOOGL.O) also gained 1% as it too trumpeted gains in cloud services and AI, alongside plans for a $70 billion buyback. With Meta (META.O) results out later, its stock was up 2% and Amazon (AMZN.O) raced ahead 4%. PacWest Bancorp's (PACW.O) shares jumped 15% in extended trading after the regional lender said deposits have been building recently. And in Europe, Standard Chartered (STAN.L) shares bucked otherwise dour markets on a forecast-beating 21% jump in first-quarter profits. U.S. Treasury markets continued to rally, with yields on 2-year notes dropping below 4% Tuesday and testing 3.9% early today.

The firm's loss widened as a global economic slowdown worsened a memory chip glut during the first quarter, prompting sluggish demand and falling prices, SK Hynix said. However, "we expect revenue to rebound in the second quarter after bottoming out in the first, driven by a gradual increase in sales volume," SK Hynix said. Such cuts will reduce inventory across the industry and improve market conditions from the current quarter, SK Hynix said. The loss is the biggest since SK Group acquired Hynix in 2012, and is the second in a row after the fourth quarter's 1.9 trillion won loss. SK Hynix shares traded up 2.1% versus a 0.2% decline in the wider market (.KS11), after the firm flagged a market rebound.

☆ South Korea's chip dilemma gets sharper
▼ + stars: | 2023-04-24 | by ( ) www.reuters.com time to read: +2 min

China's security review of the $66 billion Micron is largely seen as retaliation against U.S. export controls on chipmaking technology. Yet Yoon has reason to do what America asks at the expense of South Korean companies. Bolstering the security alliance amid rising nuclear risks from North Korea will be on the top of his agenda; negotiating better terms for South Korean electric-car and chip investments into the United States will be another. As the chip war heats up, and threatens to widen, Seoul will find keeping its top two trading partners happy even tougher. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Factbox: What's on the agenda at the South Korea-US summit?
▼ + stars: | 2023-04-24 | by ( Ju-Min Park | ) www.reuters.com time to read: +4 min

Yoon has been pushing to increase South Korea's say in operating "extended deterrence" while calls are growing in South Korea for it to develop its own nuclear weapons. At the summit, Biden will pledge "substantial" steps to underscore the U.S. commitment to deter a North Korean nuclear attack, a senior U.S. official said. South Korea's defence ministry said the allies have been exploring ways to support Ukraine but declined to confirm specific discussions. His comments prompted an angry exchange of words between Beijing and Seoul with South Korea summoning the Chinese ambassador. South Korea's comment on Taiwan was "the worst" since the establishment of diplomatic relations between China and South Korea in 1992, China's state-run Global Times said on Sunday.

☆ Samsung faces weakest quarter since 2009 as memory chip market in 'worst slump in decades'
▼ + stars: | 2023-04-24 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +3 min

A lack of demand and a chip glut has put pressure on memory prices which could hammer Samsung's profit. Samsung is the world's largest maker of memory chips, which go into everything from PCs to servers in data centers. But buyers are now cutting back on purchases of these goods due to inflation and macroeconomic concerns, leading to somewhat of a memory chip glut. Analysts at Mirae Asset Securities estimate that Samsung's chip division will post a 4.4 trillion Korean won loss in the first quarter. "Memory chip losses are expected to persist in the coming quarters as inventories remain at all-time highs, putting further downward pressure on chip prices," CrispIdea analysts said.

☆ US urges South Korea not to fill China shortfalls if Beijing bans Micron chips, Financial Times reports
▼ + stars: | 2023-04-23 | by ( ) www.reuters.com time to read: +1 min

April 23 (Reuters) - The United States asked South Korea to urge its chipmakers not to fill any market gap in China if Beijing bans memory chipmaker Micron (MU.O) from selling chips, the Financial Times reported on Sunday. The United States made the request as South Korean President Yoon Suk Yeol prepares to travel to Washington on Monday, the newspaper reported, according to four people familiar with the talks. China's cyberspace regulator Cyberspace Administration of China (CAC) said in March that it would conduct a cybersecurity review of products sold in the country by Micron. In a response, Micron said that it is cooperating with the Chinese government and that its operations in China are normal. It has blacklisted a number of China's largest chip firms, including Micron rival Yangtze Memory Technologies Co Ltd.

☆ ASML beats earnings estimates despite signs of weakness
▼ + stars: | 2023-04-19 | by ( ) www.reuters.com time to read: +2 min

ASML posted a threefold jump in net profit to 1.96 billion euros ($2.15 billion) on revenue up 91% at 6.74 billion euros. Analysts had forecast net profit of 1.62 billion euros on revenue of 6.31 billion euros, Refinitiv data shows. The outlook for ASML remains strong despite belt-tightening among its client base, ASML said. "Overall demand still exceeds our capacity for this year and we currently have an (order) backlog of over 38.9 billion euros," CEO Peter Wennink said in a statement. ASML maintained a forecast for 25% sales growth this year, with sales of between 6.5 million and 6.7 billion euros in the second quarter.

☆ TSMC talking to US about CHIPS Act 'guidance' amid subsidy concerns
▼ + stars: | 2023-04-10 | by ( ) www.reuters.com time to read: +2 min

TAIPEI, April 10 (Reuters) - Taiwanese chipmaker TSMC (2330.TW) said on Monday it is communicating with Washington about its "guidance" for a law designed to boost U.S. semiconductor manufacturing that has sparked concerns about subsidy criteria. "We can confirm that we are communicating with the U.S. government about the CHIPS ACT guidance," TSMC, the world's leading contract chipmaker, said in a short emailed statement. Taiwan Economy Minister Wang Mei-hua told reporters on Monday that TSMC was specifically talking to the United States about the details of the subsidies. Taiwan Semiconductor Manufacturing Co Ltd (TSMC) is investing $40 billion in a new plant in the western U.S. state of Arizona, supporting Washington's plans for more chip-making at home. The subsidies would come from a $52 billion pool of research and manufacturing funds earmarked under the CHIPS Act.

☆ Wall Street is looking at the positive side of Samsung’s 96% profit drop, production cuts. Here's why
▼ + stars: | 2023-04-10 | by ( Samantha Subin | ) www.cnbc.com time to read: +4 min

Samsung's plan to cut memory chip production signals a potentially sooner-than-expected recovery for the broader memory chip market, according to Wall Street. Investors seemed to laud the news, sending shares of Micron Technology and Western Digital up about 8% each on Monday. Citi analyst Christopher Danely called the news a "huge positive" for the dynamic random access memory, or DRAM, industry. But while the cuts from Samsung should help ease some pricing pressures, caveats persist, with Morgan Stanley's Joseph Moore expecting a "fairly muted" upturn from the production cuts and slow margin recovery even in 2024. "Investors are much more excited than industry contacts around this, given obvious green shoots implied from production cuts," he wrote.

☆ S.Korea's Yoon calls strategy meeting to boost chip, battery sectors
▼ + stars: | 2023-04-10 | by ( ) www.reuters.com time to read: +1 min

SEOUL, April 10 (Reuters) - South Korean President Yoon Suk Yeol ordered on Monday a national strategy meeting to boost the competitiveness of the country's rechargeable battery and semiconductor sectors, a presidential spokesperson said. South Korea's economy, heavily dependent on trade and chip exports, has been decelerating in the face of a weakening global economy and still-sluggish demand from neighbouring China. Local consumers are also holding back on spending after interest rate rises. South Korean battery and chip shares rallied in early trade on Monday. Reporting by Choonsik Yoo and Hyunsu Yim; Editing by Tom Hogue and Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

☆ Samsung to cut chip production after posting lowest profit in 14 years
▼ + stars: | 2023-04-06 | by ( ) edition.cnn.com time to read: +2 min

Seoul Reuters —Samsung Electronics said on Friday it would make a “meaningful” cut to chip production after flagging a worse-than-expected 96% plunge in quarterly operating profit, as a sharp downturn in the global semiconductor market worsens. Samsung (SSNLF) estimated its operating profit fell to 600 billion won ($455.5 million) in January-March, from 14.12 trillion won a year earlier, in a short preliminary earnings statement. The first-quarter profit fell short of a 873 billion won Refinitiv SmartEstimate, weighted toward analysts who are more consistently accurate. It was the lowest since a 590 billion won profit in the first quarter of 2009, according to company data. Revenue likely fell 19% from the same period a year earlier to 63 trillion won, Samsung said.

Samsung estimated its operating profit fell to 600 billion won ($455.5 million) in January-March, from 14.12 trillion won a year earlier, in a short preliminary earnings statement. The production cut signal is unusually strong for Samsung, which previously said it would make small adjustments like pauses for refurbishing production lines but not a full-blown cut. The first-quarter profit fell short of a 873 billion won Refinitiv SmartEstimate, weighted toward analysts who are more consistently accurate. It was the lowest since a 590 billion won profit in the first quarter of 2009, according to company data. Revenue likely fell 19% from the same period a year earlier to 63 trillion won, Samsung said.

☆ Samsung quarterly profit set to hit 14-year low amid chip glut
▼ + stars: | 2023-04-04 | by ( Joyce Lee | ) www.reuters.com time to read: +3 min

Samsung, the world's biggest maker of memory chips, TVs and smartphones as of 2022, is a bellwether for global consumption trends. Operating profit likely fell to 1.08 trillion won in the quarter ended March 31, according to a Refinitiv SmartEstimate from 27 analysts, weighted toward those who are more consistently accurate. That is lowest since a 590 billion won profit in the first quarter of 2009, according to company data, and compares with an operating profit of 14.12 trillion won last year. In February, Samsung Electronics said it planned to borrow 20 trillion won from unit Samsung Display to use as operational funds until August 2025. Operating profit at Samsung's mobile business likely fell by 9% to 3.46 trillion won in the March quarter, an average of seven analyst estimates showed.

The money will be used for operational funds such as buying chip production materials, SK Hynix said in regulatory filing on Tuesday. SK Hynix's deal was the largest convertible bond in the Asia-Pacific region, excluding Japan, in a year, according to Refinitiv data. SK Hynix did not respond immediately to a request for comment on the demand. Shares in SK Hynix fell as much as 4% in Tuesday trade, while the wider market (.KS11) rose 0.4% as of 0238 GMT. SK Hynix posted a record quarterly operating loss of 1.7 trillion won ($1.38 billion) in the September-December quarter.

☆ Taiwan says US officials have visited to discuss concerns about chip subsidies
▼ + stars: | 2023-03-31 | by ( ) www.reuters.com time to read: +2 min

[1/2] Taiwan Economy Minister Wang Mei-Hua and the Speaker of the Czech Republic parliament Marketa Pekarova Adamova attend a Taiwan-Czech Joint Business Council Meeting in Taipei, Taiwan, March 27, 2023. REUTERS/I-Hwa ChengTAIPEI, March 31 (Reuters) - The United States has sent officials to Taiwan to listen to concerns in the chip industry about the criteria for new U.S. semiconductor subsidies, Taiwan Economy Minister Wang Mei-hua said on Friday. The criteria are worrying companies like Samsung Electronics Co Ltd (005930.KS) and SK Hynix Inc (000660.KS), South Korean President Yoon Suk Yeol said on Thursday, a concern shared by the world's leading contract chipmaker in Taiwan, TSMC (2330.TW). "The U.S. side has sent relevant officials to Taiwan to listen to the industry's opinions, to collect their views," she added, without giving details. "Following on, if the industry needs the government to help communicate with the United States, the Economy Ministry will certainly assist with communication," Wang said.

☆ US chip subsidy criteria could be a 'burden', says South Korea
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +2 min

Samsung is building a chip plant in Texas that could cost over $25 billion and has said it is reviewing the guidelines. However, funding applications may require detailed cost structure information as well as projected wafer yields, utilisation rates and price changes, which three Korean chip sources told Reuters was akin to revealing corporate strategy. The United States' subsidy provisions should reflect the opinions of the government and companies of South Korea so they do not impose any undue burden on those companies, South Korean Trade Minister Ahn Duk-geun said in a statement on Thursday. Ahn's comment came from a meeting with United States Trade Representative Katherine Tai in South Korea, a leading chipmaking country and major investor in the U.S. chip sector. The U.S. Department of Commerce will accept subsidy applications for leading-edge chip facilities from March 31, and for current-generation, mature-node and back-end production facilities from June 26.

☆ SK Hynix to seek further exemption from US chip curbs against China -CEO
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +2 min

SEOUL, March 29 (Reuters) - South Korea's SK Hynix Inc (000660.KS) will ask the United States for a year's further exemption from chip curbs against China, the chief executive of the world's No. In October last year, SK Hynix said it had received authorisation from the U.S. commerce department for a year to supply equipment needed for chip production in facilities in China, without seeking additional licensing requirements. The United States announced curbs on exports of chip-making equipment to China, requiring licenses for U.S. companies to export advanced chips and chip-making equipment in a bid to slow China's technological advance. On Wednesday, the company it would pursue previously announced plans to build an advanced chip packaging plant in the United States as the review process ends. Reporting by Hyunsu Yim; Additional Reporting by Heekyong Yang; Editing by Clarence FernandezOur Standards: The Thomson Reuters Trust Principles.

☆ Chip plants in China won't be forced to shut if firms receive US funding, says S.Korea
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +2 min

The U.S. Commerce Department on Tuesday proposed limits for recipients of U.S. chip manufacturing and research funding, including limits on investing in expansion in countries such as China and Russia. The world's largest and second-largest memory-chip makers, Samsung Electronics (005930.KS) and SK Hynix (000660.KS), have chip production facilities in China. Samsung is building a chip plant in Texas that could cost more than $25 billion, while SK Hynix parent SK Group announced last year plans to invest $15 billion in the U.S. chip industry. The proposed rules for funding recipients limit chip production capacity growth in China to 5% over 10 years as measured by wafers, and 10% for older legacy chips, the trade ministry said. Samsung and SK Hynix said they would review the details of the announcement.

☆ Samsung Electronics to invest $230 bln through 2042 in South Korea chipmaking base
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +1 min

SEOUL, March 15 (Reuters) - Samsung Electronics Co Ltd (005930.KS) on Wednesday said it will invest around 300 trillion won ($230 billion) by 2042 to develop what the government called the world's largest chip-making base, in line with efforts to enhance South Korea's chip industry. The amount makes up most of the 550 trillion won in private-sector investment announced by the government on Wednesday, under a strategy that expands tax breaks and infrastructure support to increase the competitiveness of high-tech industries including those involving chips, displays and batteries. Samsung's manufacturing additions will include five chip factories and attract up to 150 materials, parts and equipment makers, fabless chipmakers and semiconductor research-and-development organisations, the Ministry of Trade, Industry and Energy said in a statement. South Korea, home to the world's two biggest memory chip makers, Samsung Electronics and SK Hynix Inc (000660.KS), is seeking to improve supply-chain stability to become a major player in the non-memory chip field, currently dominated by chipmakers such as Taiwan Semiconductor Manufacturing Co Ltd (2330.TW) and Intel Corp (INTC.O). ($1 = 1,305.1200 won)Reporting by Heekyong Yang and Joyce Lee; Editing by Christopher CushingOur Standards: The Thomson Reuters Trust Principles.

Samsung said it will make a 300 trillion Korean won investment in a new semiconductor facility in South Korea over the next two decades. It is part of a broader tech investment plan by the South Korean government. The South Korean government is looking to join together its biggest technology companies to spur development in key areas. The new 300 trillion won chip complex Samsung is building will be just outside of the South Korean capital of Seoul. The South Korean government said that companies will build five chip manufacturing facilities in the cluster.

☆ ASML, China customers haunted by uncertainty on new Dutch chip export rules
▼ + stars: | 2023-03-09 | by ( Tosterling Philip Blenkinsop | Philip Blenkinsop | ) www.reuters.com time to read: +4 min

The "installed base" segment contributed about 25% of ASML's worldwide revenue in 2022. ING analyst Marc Hesselink calculated that the new Dutch rules could possibly affect products that account for 10% of ASML's worldwide sales. The Chinese may have a competitive advantage there, and ASML's sales in China could even grow modestly. Regardless, ASML will thrive outside China in the long run as chipmakers worldwide expand capacity, he said. "The demand for ASML machines is not going to be impacted, it's simply going to shift to a different region," he said.

☆ S. Korea's trade minister to raise concerns over Chips Act in US meetings
▼ + stars: | 2023-03-08 | by ( Heekyong Yang | ) www.reuters.com time to read: +2 min

SEOUL, March 8 (Reuters) - South Korea's trade minister will meet with counterparts in Washington this week to express concerns that the U.S. Chips Act could make the U.S. a less attractive investment destination, its trade ministry said. During his trip, South Korea's trade minister Ahn Duk-geun plans to meet with senior officials from the U.S. Commerce Department and White House as well as officials from major think tanks to discuss the Chips Act. The Chips Act plays a central role in the Biden administration's effort to bring semiconductor manufacturing home, and its success is vital to U.S. ambitions to keep ahead of China in global markets. Under the Chips Act, companies that accept the incentives are required to share with the U.S. government a portion of their profits that exceed initial projections by an agreed-upon threshold. Companies winning chips subsidies would be barred from engaging in joint research and technology licensing efforts or expanding semiconductor manufacturing capacity in foreign countries of concern like China for 10 years.

☆ Dutch to restrict semiconductor tech exports to China, joining US effort
▼ + stars: | 2023-03-08 | by ( ) edition.cnn.com time to read: +3 min

Amsterdam/Washington Reuters —The Netherlands’ government on Wednesday said it plans new restrictions on exports of semiconductor technology to protect national security, joining the US effort to curb chip exports to China. The announcement marked the first concrete move by the Dutch, who oversee essential chipmaking technology, toward adopting rules urged by Washington to hobble China’s chipmaking industry and slow its military advances. It specified one technology that will be impacted is “DUV” lithography systems, the second-most advanced machines that ASML sells to computer chip manufacturers. Major ASML customers such as TSMC and Intel (INTC) are engaged in capacity expansions. ASML has never sold its most advanced “EUV” machines to customers in China, and the bulk of its “DUV” sales in China go to relatively less advanced chipmakers.

The Netherlands' government on Wednesday said it plans new restrictions on exports of semiconductor technology to protect national security, joining the United State's effort to curb chip exports to China. Dutch Trade Minister Liesje Schreinemacher announced the decision in a letter to parliament, saying the restrictions will be introduced before the summer. It specified one technology that will be impacted is "DUV" lithography, the second-most advanced machines that ASML sells to computer chip manufacturers. Major ASML customers such as Taiwan Semiconductor Manufacturing Co. and Intel are engaged in capacity expansions. ASML has never sold its most advanced "EUV" machines to customers in China, and the bulk of its DUV sales in China go to relatively less advanced chipmakers.

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