S.Korean chipmakers rise after U.S tightens exports to China's SMIC

DB HiTek

28/09/2020 01:58

** Shares of South Korea's contract chipmaker DB Hitek Co
Ltd  000990.KS  rise as much as 6.7% to 37,200 won ($31.69),
while the world's largest memory chipmaker Samsung Electronics
Co Ltd  005930.KS  gains as much as 0.9% 
     ** Chipmakers rise after the United States imposed
restrictions on exports to China's biggest chipmaker SMIC after
concluding there is an "unacceptable risk" equipment supplied to
it could be used for military purposes  urn:newsml:reuters.com:*:nL8N2GN07T
    ** U.S. companies including Lam Research  LRCX.O , KLA Corp
 KLAC.O  and Applied Materials  AMAT.O , which supply chipmaking
equipment, may now need to get licenses to ship certain goods to
SMIC.
    ** "If SMIC is no longer able to source U.S. chipmaking
equipment and produce relatively lower-end contract chips, then
DB Hitek that makes similar products will likely become a
beneficiary of the situation," said Park Sung-soon, an analyst
at Cape Investment & Securities 
    ** Park added that Samsung Electronics will not see
immediate impact of the U.S. exports curb to SMIC as the South
Korean tech giant's contract chipmaking business is focused on
more advanced chips, but if Chinese chipmakers struggle to
achieve advanced chip processes due to lack of U.S.
semiconductor equipment, it will eventually help Samsung gain
more market share in the global contract chipmaking market
    ** The benchmark KOSPI market  .KS11  was trading up 0.8% as
of 1243 GMT 

    ($1 = 1,173.8900 won)

 (Reporting by Heekyong Yang)
 ((Heekyong.Yang@thomsonreuters.com; +82 2 6936 1470;))