Zhitong Finance App learned that chip stocks declined in the afternoon. As of press release, Huahong Semiconductor (01347) fell 4.33% to HK$19.02; Contron (01912) fell 4.26% to HK$0.045; SMIC (00981) fell 3.86% to HK$19.9; and Shanghai Fudan (01385) fell 1.43% to HK$13.76.
According to the news, Samsung Electronics' preliminary financial report released on Wednesday showed that operating profit for the third quarter fell 78%, from 10.85 trillion won in the same period last year to 2.4 trillion won (about 1.79 billion US dollars). The reason is that its chip business lost money due to continued oversupply of global chips. Samsung's chip business revenue fell 13% from the same period last year to 67 trillion won. Among them, memory chips became the hardest hit area for losses.
Furthermore, according to a report by the Financial Services Association today, the US will take more measures to prevent US chipmakers from circumventing government restrictions on selling semiconductor products to China in order to “fill policy loopholes.” This is part of an upcoming move by the Biden administration to block the export of more artificial intelligence (AI) chips. The new restrictions will be part of the comprehensive restrictions on exports of advanced chips and chip manufacturing equipment to China announced by the US in October last year.