Despite the news of receiving subsidies worth 660 billion won from the U.S. administration, SK hynix's stock price remains weak. It is interpreted that the impact of Micron's performance and the 'Powell shock' is stronger.

On Oct. 25, in Gangnam-gu, Seoul, at the Semiconductor Exhibition, visitors are examining semiconductor wafers. /Courtesy of News1

As of 10:13 a.m. that day, SK hynix is trading at 170,000 won, down 5,000 won (2.86%) from the previous day.

The previous day, the U.S. Department of Commerce announced that it would provide SK hynix with a maximum of $458 million (about 664 billion won) in subsidies under the Chips Act and will also support government loans of up to $500 million (about 724.8 billion won). Earlier, on 4th, SK hynix announced plans to build a semiconductor packaging production base in Indiana and collaborate with local research institutions, including Purdue University, on semiconductor research and development.

However, the stock price is declining. This is primarily due to the disappointing performance outlook released by Micron, regarded as the 'semiconductor barometer,' which was the first major memory semiconductor company to announce its performance. Micron projected sales of $7.9 billion and earnings per share of $1.53 for the second quarter (December 2024 to February 2025), significantly lower than Wall Street's expectations of $8.99 billion and $1.92.

In addition, the impact of hawkish remarks made by Jerome Powell, Chair of the U.S. Federal Reserve, during a press conference continues to linger in the market. Powell noted, 'We are entering a new phase and will be cautious about further cuts,' and added, 'Policy is still tight, but it has gotten somewhat closer to neutral interest rates.' Concerns have grown that the two rate cuts indicated in the Federal Reserve's dot plot for next year may not be easy.

At the same time, Samsung Electronics was trading at 52,200 won, down 900 won (1.69%) from the previous day. So far, Samsung Electronics, SK hynix, TSMC, Intel, and Micron have announced capital investment plans in the U.S., and among them, the subsidy amounts for the four companies, excluding Samsung Electronics, have been finalized.