Shares in Samsung, SK Hynix drop after US makes it harder to make chips in China

By Heekyong Yang

SEOUL (Reuters) -Shares in Samsung Electronics and SK Hynix dropped on Monday after Washington revoked authorisations that allowed them to secure U.S. semiconductor manufacturing equipment for their chip plants in China.

The move is set to go into effect in 120 days.

Analysts estimate that more than a third of Samsung’s DRAM output comes from China, while 30–40% of SK Hynix’s DRAM and NAND production is based there.

Shares in Samsung were down 2.3% in morning trade while shares in SK Hynix lost 4.4%. That compared with a 0.7% fall in the benchmark KOSPI.

The two chipmakers had, until now, benefited from exemptions to sweeping restrictions that the U.S. had imposed on chip-related exports to China.

In response to the move, SK Hynix said it would maintain close communi