Input 2021.01.11 15:29 | Revision 2021.01.11 15:38
On the 11th, an official in the financial investment industry said, “Samsung Electronics and LG Chem’s rivals have been adversely affected, resulting in unexpected good news for these stocks.” There is also a joke from the stock market, “No matter how predicted, unexpected good news is coming out, so it is harder to determine the direction of large-cap stocks and the KOSPI in the future.”
On December 4, a power outage continued for more than an hour at the Taiwan factory in Micron, the US, one of the memory semiconductor’Big 3′. Due to the nature of the semiconductor manufacturing process, even a temporary power outage generally causes production disruptions for 1 to 2 months. This factory is the largest of the micron DRAM production facilities.
Right now, with Micron’s competitor Samsung Electronics SK hynix (000660)Rose on foreigners’ buying trend, expecting a reflective profit. At the time, Samsung Electronics’ closing price exceeded 70,000 won for the first time. SK Hynix also rose 3.14%. On the 7th (local time), Micron revealed that last quarter’s power outage in Taiwan affected DRAM manufacturing operations. As DRAM production declined, prices rose in a short period of time.
The delay in development of Taiwan TSMC’s 3-nano (nm) process technology on the 8th as a core technology bottleneck was a good thing for Samsung Electronics. TSMC is Samsung Electronics’ strongest competitor in the global foundry (semiconductor contract manufacturing) market, and TSMC and Samsung Electronics are ranked first and second respectively in terms of market share. On this day, foreigners net bought Samsung Electronics 602.764 billion won. Samsung Securities researcher Kim Yong-gu analyzed that “the reason that foreigners bought Samsung Electronics on a large scale was due to the news of delayed mass production by TSMC.”
In December last year, the US sanctioned SMIC, the world’s fifth-largest foundry company after Huawei in China, also contributed to the strength of Samsung Electronics. On the 10th, UMC, the world’s fourth-largest foundry, stopped supplying power to its local factory in Taiwan. This incident is expected to intensify the supply shortage in the foundry industry.
Samsung Electronics is expected to benefit from reflections as Chinese companies were withdrawn from the Morgan Stanley Capital International (MSCI) Emerging Markets Index (EM) on the 8th. MSCI urgently deleted three major telecommunications companies, including China Mobile, China Telecom, and China Unicom, according to the US executive order. In the securities market, this will increase the proportion of Korea’s EM index by 0.07 percentage points (P), which is estimated to have an inflow effect of about 280 to 420 million dollars.
In the case of CATL, China’s largest electric vehicle battery maker, competing for the first and second place in the world with LG Chem, a factory explosion accident occurred at its Hunan subsidiary on the 7th. It is known that the factory where the explosion occurred was responsible for 19% of CATL production capacity. Seol-Hwa Choi, a researcher at Korea Investment & Securities Co., predicted, “As this incident highlights the possibility of a fire safety investigation for a Chinese battery plant, supply disruptions may occur in some production lines due to safety inspections.”
Samsung Electronics rose more than 7% compared to the previous trading day on the 8th. It also rose to 96,000 won during the intraday. LG Chem also closed at 999,000 won, up 3.85% from the previous trading day on the 8th. During the market this morning, it rose to the 1,040,000 won line.