TLDR
- Samsung Electronics stock fell 7% to ₩249,750 on Wednesday as a broad semiconductor selloff hit Asian markets
- The KOSPI dropped more than 6%, triggering the Korea Exchange’s sell-side sidecar mechanism to temporarily halt program trading
- U.S.-Iran tensions pushed oil prices higher, lifting Treasury yields and pressuring tech stocks globally
- Samsung has raised prices for advanced contract chipmaking by up to 15%, with its SF4 and SF5 process nodes seeing the steepest hikes
- Samsung’s foundry unit, a loss maker since 2022, could return to profit as early as next year if pricing holds
Samsung Electronics stock dropped 7% to ₩249,750 on Wednesday, caught in a broad semiconductor selloff that sent the South Korean KOSPI tumbling more than 6%.
Samsung Electronics Co., Ltd., SMSD.L
The Korea Exchange activated its sell-side sidecar mechanism during the session, temporarily suspending program trading as institutional selling accelerated. The prior session had already seen the KOSPI fall 1.55%, snapping a six-day winning streak after institutions net-sold nearly 785 billion won in Korean equities.
The selloff tracked steep overnight losses in U.S. memory chip names, as investors pulled back from technology exposure across the board. Rival SK Hynix also came under heavy institutional pressure on the day.
The trigger was renewed U.S.-Iran tensions. A sustained standoff in the Strait of Hormuz pushed crude oil prices higher, reigniting inflation fears and lifting U.S. Treasury yields. That combination tends to hit high-multiple tech stocks hard.
Adding pressure, reports emerged that the U.S. had asked South Korea to make memory chip manufacturing in America the centerpiece of a planned $350 billion investment package. Seoul denied the specifics, but the headlines created fresh uncertainty for Korean semiconductor exporters.
Foundry Price Hikes Signal Turning Point
Separately, Reuters reported that Samsung has raised prices for some advanced contract chipmaking services by up to 15% for new orders, citing two people familiar with the matter.
Prices for chips made on its 4-nanometre SF4 process rose 10% to 15% for customers in China and the U.S., while Taiwan-based customers saw increases of 5% to 10%. Wafers from its 5-nanometre SF5 process also rose 10% to 15%, and its older 8-nanometre technology saw increases of nearly 10%.
Chinese customers have been among the most eager to absorb the steeper prices. U.S. export curbs on advanced chipmaking equipment have pushed Chinese firms to rely more heavily on overseas foundries like Samsung.
Samsung produced just 7% of global foundry revenue in Q1 2026, compared to more than 70% for TSMC. But with TSMC’s leading-edge capacity heavily booked by AI chip demand, Samsung has gained pricing power it has rarely had in this segment.
“As TSMC faces tight capacity and raises prices, customers are shifting to rivals such as Samsung and Intel, prompting Samsung to raise its prices as well,” said Lee Min-hee, analyst at BNK Investment & Securities.
Foundry Business Could Turn Profitable
Samsung’s foundry division has been loss-making since 2022. But Lee suggested that if pricing holds, the unit could become profitable as early as next year, ahead of prior expectations.
Samsung’s SF4 line at its Pyeongtaek plant has run at full capacity since late last year. The line serves customers including Qualcomm and produces base dies for Samsung’s own HBM chips.
In July, Samsung announced a chip production deal with Broadcom. Nvidia CEO Jensen Huang said in March that Samsung would manufacture its new AI inference processor. Tesla and Apple also unveiled chip manufacturing deals with Samsung last year.
Google is currently in talks with Samsung to manufacture chips using the SF4 process, according to one source familiar with the pricing changes.
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