On this day alone, 3% surge… Increased to 89900 won during intraday
Vehicle semiconductor collaboration, factory expansion, early production of Intel products
Samsung(89,400 +3.00%) Stock prices rallied. Samsung Electronics Vice Chairman Lee Jae-yong has been away for 18 months, but news of the development of automotive semiconductors through collaboration with Tesla and reports of expansion of US semiconductor factories boosted the stock price.
In the stock market on the 25th, Samsung Electronics finished trading at 89400 won, up 2600 won (3.0%) from the previous day. During the intraday, it rose to 89900 won and was close to the 90,000 won line. Samsung Electronics, which plunged to 85,000 won on the 18th, was close to the 90,000 won line in just five trading days.
The news that Tesla and Samsung Electronics are collaborating to make automotive semiconductors has positively affected the stock price.
On the day, one media reported that Samsung Electronics’ commissioned production (foundry) division is conducting research and development (R&D) on a 5 nanometer (nm) class system semiconductor to be mounted on Tesla autonomous vehicles. 5nm semiconductors applied with the extreme ultraviolet (EUV) process can only be produced by very few companies worldwide such as Samsung Electronics and TSMC.
The area where the two companies are expanding cooperation this time is said to be the infotainment (IVI) product family using 5nm semiconductors. Various semiconductors such as processors, neural network processing units (NPUs), security integrated circuits, memories, and display driving chips (DDI) are used in infotainment.
Foreign media reports that Samsung Electronics is considering building or increasing semiconductor factories in the US also boosted the stock price.
On the 22nd (local time), the Wall Street Journal reported that Samsung Electronics is considering building a semiconductor production line in Texas, Arizona, and New York, spending 17 billion dollars (about 18 trillion won). On the same day, Bloomberg News also said that Samsung Electronics plans to expand its foundry line at its Austin, Texas plant with more than 10 billion dollars (about 11 trillion won).
However, Samsung Electronics said that there was no decision on the size or timing of the investment.
There is also a forecast that Samsung Electronics will proceed with consignment production of Intel products faster than expected.
On the day, Kim Sun-woo, a researcher at Meritz Securities, said, “Samsung Electronics and Intel have been preparing to develop and mass-produce Intel motherboard chipsets for the past two years.”
“Although it started with mass production of chipsets, which are relatively low value-added products, the situation of development cooperation between the two companies, which was not disclosed until now, but only rumored, has finally emerged.” He explained.
On this day, the actual sentence of Samsung Electronics Vice Chairman Lee Jae-yong was confirmed. This is because Vice Chairman Lee and the Special Prosecutors Team decided not to appeal again.
The sentence for Vice-Chairman Lee was confirmed to be two years and six months in prison without both sides making a re-appeal. Under the premise that he will not be released in the middle through pardon or parole, Vice-Chairman Lee is imprisoned in February 2017 and must serve an additional 18 months, minus the 353 days he was sentenced to probation for second trial.
Samsung Electronics plans to enter the emergency management system in earnest as the absence of the total number becomes a reality. The daily work is expected to be decided by the president of each affiliate, and if a decision of the total number is required, it is expected to be performed in an in-house reporting method.
Lee Song-ryul, reporter of Hankyung.com [email protected]