Shares of Samsung Electronics and SK Hynix fell sharply on Monday following reports that the two South Korean memory chip giants are preparing to announce combined investment plans totaling more than $1.3 trillion.
Samsung Electronics stock dropped 4.7% in Seoul trading, while SK Hynix also faced heavy selling pressure.
8% in early trading, while S&P 500 futures were down 1%, reflecting a risk-off sentiment that is amplifying concerns over capital efficiency in the semiconductor industry.
The market reaction underscores growing investor skepticism regarding the sheer scale of capital expenditure required to maintain leadership in the high-bandwidth memory (HBM) and advanced semiconductor sectors.
The reports come at a time when US equity markets are bracing for a broader downturn, with technology stocks facing sustained selling pressure.
Nasdaq 100 futures tumbled approximately 2.8% in early trading, while S&P 500 futures were down 1%, reflecting a risk-off sentiment that is amplifying concerns over capital efficiency in the semiconductor industry.
The negative reaction stands in stark contrast to recent price action for SK Hynix.