According to Reuters, after the United States announced that it would introduce new export control regulations to expand the "blockade" against Huawei, SK Hynix, as one of Huawei's suppliers, fell 3.3% in early trading on Monday, mainly due to market concerns about the United States. The move will impact the operation of SK Hynix.
The new rules of the US Department of Commerce expand the scope of the entity list. Whether it is a US company or not, as long as it uses US technology and equipment, it needs a license to ship to Huawei.
Analysts said that SK Hynix and Samsung Electronics use US technology in chip production, but the chips are designed by themselves, so they will not be directly affected by US restrictions.
However, they also pointed out that the continuous escalation of the Sino-US trade war will damage the demand for mobile phones and mobile phone parts from companies such as Huawei and Apple. Cape Investment & Securities analyst Park Sung-soon said that in the long run, this is not good news, because it will lead to reduced demand for Huawei.