Samsung, SK Hynix shares slide on new U.S. China chip curbs

STORY: Shares in Samsung and rival SK Hynix took a hit Monday (September 1) after news of new U.S. curbs on chipmaking.

Washington has revoked permissions that allowed them to obtain U.S. manufacturing gear for their plants in China.

The move will take effect 120 days after an official notice late last week, and could have a big impact on the South Korean giants.

Analysts estimate around a third of their output of some types of memory chips is based in China.

And the pair had previously relied on exemptions to sweeping U.S. curbs on the export of chip-related gear to the country.

In a statement last week, the U.S. Commerce Department said it wouldn't stop the tech firms working in China, but would not grant licenses to upgrade or expand in the country.

Samsung shares were down close to 3% by midafternoon Monday, with SK Hynix off about 5%.

Samsung declined to comment on the news.

While SK Hynix said it would maintain close contact with Washington and Seoul, and do all it could to minimize the impact of the change. Related Videos

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One analyst said the firms could limit the effects in the short term.

He says the pair have both mainly planned to develop new production lines in their home country, while maintaining China operations as they are.

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