Why Samsung and SK Hynix stock are falling today - Invezz

On June 29, 2026, despite South Korea’s announcement of a massive $1.3 trillion investment plan in AI chips and related infrastructure, shares of Samsung Electronics and SK Hynix fell. Investors are c... Read original →

South Korea’s $1.3 trillion AI chip push isn’t a lifeline—it’s a capital expenditure trap for Samsung and SK Hynix. Technically, surging HBM and advanced packaging demand forces rapid EUV and CoWoS-like line deployment, yet upstream equipment delays and material inflation create hidden bottlenecks. Regulatory alignment with U.S. export controls compels redundant 'China-excluded' fab builds, inflating operational costs. TSMC and Micron will exploit this: TSMC is aggressively scaling CoWoS to lock in AI packaging dominance. Over the next 12–24 months, any slowdown in global AI server demand could trigger a memory price crash, echoing 2019’s overcapacity crisis. The real battleground isn’t capacity volume—it’s per-bit energy efficiency and yield control.