Daily Management Review

South Korean semiconductor manufacturers shares jump after Micron report


Shares of semiconductor manufacturers in South Korea rose sharply on Thursday after publication of better-than-expected financial results of the American chip maker Micron Technology, reports CNBC.

Although the American chip maker's forecast for financial quarter III turned out to be lower than Wall Street’s expectations, the company expects demand to rise again by the fourth quarter.

After the publication of the profit report, Micron shares jumped 4.78% after the close of the main trading session in the US on Wednesday.

Trade tensions between the United States and China and concerns about a slowdown in China’s economic growth have shaken investor confidence in some key industry players.

According to Manish Nigam, head of technology research in the Asia-Pacific region at Credit Suisse, investors must continue to focus on supply issues in the sector, as Micron, SK Hynix and Samsung signal a reduction in capital expenditures.

“Based on the current guidance of all three major chip manufacturers [on capital expenditures], the basic supply growth will not exceed 15%,” says Nigam. “The growth in demand, even with a rather bearish scenario, will probably be much stronger”.

source: bloomberg.com