China's chip ambitions grow with server chips due this year, sending KOSPI to 6,000 level

The KOSPI fell by more than 4%, sliding toward the 6,000 mark. Investor sentiment deteriorated on news that Chinese memory semiconductor company CXMT plans to launch server semiconductors within the year. Coupled with rising international oil prices, this has dragged down the KOSPI index.

As of 9:10 a.m. on the 13th, the KOSPI stood at 6,092.31, down 291.93 points (4.57%) from the previous trading day.

U.S. stock markets overnight also showed mixed results amid news of CXMT and rising international oil prices. On the 12th (local time), the S&P 500 index closed at 7,807.24, down 4.30 points (0.06%) from the previous session, while the NASDAQ Composite Index fell 120.27 points (0.44%) to close at 27,245.90. In contrast, the Dow Jones Industrial Average ended trading at 51,850.55, up 195.60 points (0.38%) from the previous session.

According to Chinese media, CXMT President Chao Kanwei recently stated at an event that the company plans to release its next-generation server memory product, "DDR5 RDIMM," utilizing the DRAM architecture "4F²" by year-end. As a result, the Philadelphia Semiconductor Index fell to its lowest level in three weeks.

Han Ji-young, a researcher at Kiwoom Securities, said, "The domestic stock market today will see volatility in the early session due to the spillover effect of weakness in U.S. semiconductor stocks triggered by China's CXMT," adding, "From a short-term perspective, whether the KOSPI can maintain support at its 200-day moving average has become important."

In the KOSPI market (based on the combined Korea Exchange and Nexttrade), foreign investors are net sellers of 480.6 billion won. Retail investors and institutional investors are net buyers of 249.0 billion won and 295.4 billion won, respectively.

All sectors in the KOSPI are declining. Chemicals, transportation equipment and parts, machinery and equipment, electrical and electronics, manufacturing, metals, finance, securities, insurance, and others are down by more than 3%. Transportation and warehousing, IT (information technology), distribution, and others are also sliding by more than 2%.

The share prices of all top 20 KOSPI market capitalization stocks are falling. Samsung Electronics is down in the 4th% range, while SK Hynix is declining in the 5th% range. Investor sentiment appears to have been dampened by news of CXMT's plan to launch server memory.

SK Square is falling by more than 7%. Samsung SDI is down in the 6th% range, and Samsung Electro-Mechanics is declining in the 5th% range.

The KOSDAQ stands at 820.55, down 28.64 points (3.37%) from the previous trading day.

In the KOSDAQ market, retail investors are net sellers of 145.9 billion won. Foreign investors and institutional investors are net buyers of 141.2 billion won and 5.1 billion won, respectively.

Excluding textiles and apparel and other manufacturing, which are slightly up, all other KOSDAQ sectors are declining. Technology growth companies are down by more than 4%, while general services, non-metals, pharmaceuticals, electrical and electronics, medical and precision equipment, and others are falling in the 3rd% range.

All top 20 KOSDAQ market capitalization stocks are also declining. Ecopro BM, RAINBOW Robotics, RoboTech, and Eugene Tech are all weak in the 5th% range.