Samsung Electronics Co. lost 1 percent of its value on Monday as foreign investors intensified their selloff amid concerns about potentially greater competition in the lucrative foundry market due to Intel’s participation.
Samsung Electronics shares fell 1 percent from the previous session to close at 79,000 won ($68.85) on Monday, the lowest level in almost two months.
Foreigners drove the downfall with a net sale of 119.2 billion won as of 10:00 a.m. The biggest sellers include HSBC, Morgan Stanley and JP Morgan.
The selling spree came after media reports last week that Intel is in discussions to buy chip manufacturer GlobalFoundries for about $30 billion.
GlobalFoundries is the third-largest foundry player with a market share of 6.6 percent, and Intel’s potential acquisition could deepen competition with No. 2 player Samsung Electronics.
“The current foundry market is dominated by two big names - TSMC and Samsung Electronics, but the market landscape could be change with the ascending of a third big name and the U.S. government could strengthen its protectionist moves in the semiconductor market,” said Kim Yang-jae, an analyst at KTB Investment & Securities.
The biggest risk is stricter environmental regulations like carbon border adjustments, Kim warned. Intel and GlobalFoundries hinge 80 percent of their factory operation on renewable energies, but Samsung Electronics and TSMC a mere 14 percent and 6 percent, respectively.
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