Samsung, SK hynix shares plunge on 'Black Tuesday' amid concerns over Chinese chip

Samsung Electronics and SK hynix suffered a "Black Tuesday" as their shares plunged by around 7 to 10 percent in a single day.

Samsung Electronics fell 7.39 percent, down 18,500 won ($14), from the previous session to close at 232,000 won on the Kospi. SK hynix shares fell 162,000 won, or 10.09 percent, to 1.443 million won.

Analysts attributed the semiconductor stocks' sharp declines to reports of technological advances by CXMT, China's largest dynamic random-access memory manufacturer.

CXMT recently announced that it intends to introduce DDR5-registered dual in-line memory modules for servers by the end of the year. Analysts warned that successful production could threaten the competitive positions of Korean chipmakers.

Samsung Electronics and SK hynix had already fallen 4.4 percent and 4.5 percent, respectively, on Monday. Both stocks continued to slide Tuesday as foreign investors extended their sell-off.

Another factor weighing on the shares was weakening institutional buying demand. Samsung Electronics has completed its share repurchase program to provide stock-based compensation to employees, while SK hynix's share buyback and cancellation program is also nearing completion.

BY SHIN HYE-YEON [[email protected]]