Shares in Samsung Electronics Co slumped more than 6 percent on Wednesday, wiping $10 billion off the electronics giant’s market value, on a report that Apple placed huge chip orders with troubled Japanese chip rival Elpida.<\/p>\n
Taiwan’s DigiTimes, an online trade news site, reported that Apple recently placed large mobile dynamic random access memory (DRAM) orders with Elpida’s 12-inch plant in Hiroshima, Japan, securing around half the facilities total chip production. It cited unnamed industry sources in its report, which hit shares of major chip suppliers to Apple.<\/p>\n
SK hynix shares closed almost 9 percent lower at a 20-week low – the biggest one-day drop in nine months. Samsung, the world’s biggest DRAM maker, tumbled 6.2 percent to a 9-week low of 1.23 million won ($1,100) – the stock’s biggest daily fall in nearly four years.<\/p>\n
“It looks like Apple doesn’t want to see Samsung and hynix dominate the chip market. Apple wants to maintain its bargaining power by keeping Elpida running,” said Choi Do-yeon, an analyst at LIG Investment & Securities.<\/p>\n
U.S.-based Micron Technology Corp is in talks to acquire Elpida’s business as the Japanese firm tries to restructure after tough market conditions and global competition drove it into bankruptcy protection.<\/p>\n
“A merged Micron-Elpida could pose a significant threat to South Korean memory chipmakers, and Elpida’s huge order from Apple was the spark that triggered these worries,” said Lim Dol-yi, an analyst at Solomon Investment & Securities.<\/p>\n
Samsung declined to comment, as did the Japanese court-appointed trustee handling Elpida’s rehabilitation.<\/p>\n
A spokeswoman for SK hynix said: “We are receiving more orders for mobile DRAM chips from our customers.” She declined to comment on whether Apple had reduced orders from the firm.<\/p>\n
Technology shares were also impacted by a broader sell-off after talks to form a new Greek government failed, stoking concerns the country may exit the euro zone and increase financial market uncertainty. Shares in flat-screen maker LG Display slid 4.5 percent. Hyundai Motor lost 4 percent..<\/p>\n
“Samsung shares were already facing pressure since offshore investors began cutting back on risk during the latest streak of sell-offs, but the news surrounding Elpida was the straw that broke the camel’s back,” said Rhoo Yong-suk, an analyst at Hyundai Securities. “It was just unfortunate timing that coincided with jitters surrounding Greece.”<\/p>\n","protected":false},"excerpt":{"rendered":"
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