Samsung Electronics' external semiconductor 2 trillion won, semiconductor stocks take a breather

After Micron plunged, South Korean semiconductor stocks showed signs of taking a breather. Power-related stocks were strong as concerns about electricity shortages at AI data centers came to the fore. The semiconductor and power sectors moved in opposite directions.

Samsung Electronics reportedly bought external semiconductors used in smartphones 1in the quarter alone 2worth trillion won. Tensions between the labor union and the company have also continued at Samsung Electronics. A debate has emerged over how to address wages if the semiconductor division posts a loss.

Claims have been made that the Yongin semiconductor industrial complex runs counter to balanced national development. The claims call for a full review of the industrial complex plan. Debate has continued over whether it is appropriate to concentrate more semiconductor production facilities in the Seoul metropolitan area.

LG Innotek was seen as potentially moving in tandem with semiconductor share-price trends. KB Securities set a target price for LG Innotek at 120ten thousand won. Alongside its existing core business, expectations related to semiconductors were also mentioned.

KMW was assessed as hinging on its performance next year. Hana Securities raised its target price for KMW to 7ten thousand won. In the telecommunications equipment sector, whether earnings recover next year was cited as a basis for assessing share prices.

Issues involving semiconductors, power, telecommunications equipment and semiconductor industrial complexes emerged simultaneously in the South Korean stock market. Samsung Electronics and LG Innotek were mentioned in connection with expectations for the semiconductor supply chain and components. Power stocks moved in tandem with the growing importance of electricity supply issues amid investment in AI data centers.