Loading...
The Democratic victory in the US midterm elections, with several candidates opposed to data center expansion being elected governors, has raised concerns about a slowdown in US AI infrastructure investment. As a result, Asian chip stocks came under pressure on Wednesday, with Samsung Electronics and SK Hynix facing the risk of impacted demand for server DRAM and high-bandwidth memory (HBM). Opposition to data centers focuses on noise, water consumption, energy consumption, and electricity costs, with the market worried that tighter local government approval processes could delay the construction of new data centers. The election results will have mixed impacts on South Korean businesses. A Democratic-controlled Congress could potentially restrain President Trump's moves to cut subsidies under the Chip and Science Act, benefiting companies like Samsung Electronics with investments in the US. The clean energy tax credit is expected to be reinstated, benefiting solar energy companies such as Hanwha Solutions. Automotive tariffs are unlikely to ease, while the framework for South Korea-US shipbuilding cooperation is expected to continue.