Nov 13, V7N-Shares of Samsung Electronics, the world's leading memory chip maker, hit their lowest point in over four years on Wednesday, as analysts highlighted growing concerns over the impact of potential U.S. tariffs under President-elect Donald Trump’s administration.

Trump’s proposed 10% universal tariff on imports and a steeper 60% tariff on Chinese goods are expected to harm global electronics demand, affecting Samsung significantly. With a greater reliance on Chinese customers compared to its local rival SK Hynix, Samsung could face greater challenges, said Lee Min-hee, an analyst at BNK Investment & Securities.

Greg Noh from Hyundai Motor Securities warned that reduced demand for electronics, spurred by the tariffs, would likely lead to lower chip orders, further impacting Samsung's performance.

Samsung’s struggles this year are compounded by its failure to capitalize on surging demand for artificial intelligence (AI) chips, unlike competitors such as TSMC and Nvidia. SK Hynix, in contrast, has made significant gains by supplying high-end AI server chips to U.S. customers like Nvidia.

Samsung shares, which are South Korea's most valuable stock, fell for a fourth consecutive session, dropping 2.1% as of 0126 GMT after an intraday dip of 2.5% to 51,700 won—their lowest level since June 2020. The broader KOSPI market fell 1.5% during the same period.

In contrast, SK Hynix shares rebounded 2% following a two-day decline, while U.S. chipmaker Nvidia has seen a staggering 199% increase in value this year.

South Korean President Yoon Suk Yeol expressed worries that Trump’s tariff policies could lead Chinese competitors to slash export prices, creating additional pressure on Korean chipmakers.

Samsung’s shares are down 34% year-to-date, on track for their worst annual performance in over two decades. Meanwhile, SK Hynix has gained 32% this year, underscoring the diverging fortunes of South Korea’s top chipmakers amid shifting market dynamics.

END/BUS/RH/