Shares in Samsung slumped more than six percent costing the company $10 billion on the back of news that Apple had placed huge orders with Elpida.
The source of the news was DigiTimes, but it appears to have been believed, perhaps because no one believed that Apple would stay with Samsung after its court battles..
The orders were for mobile DRAM and were with Elpida’s 12-inch plant in Hiroshima, Japan. Basically the move will provide half the facility’s total chip production.
Hynix shares also dropped by nine percent. Samsung is the world’s biggest DRAM maker and its shares fell.
Choi Do-yeon, an analyst at LIG Investment & Securities, told Reuters that it was more about Apple not wanting Samsung and Hynix to dominate the chip market, so it wants to keep the bankrupt Elpida running.
Micron is in talks to acquire Elpida’s business as the Japanese firm, so a merged Micron-Elpida could put the fear of god into the South Korean memory chip makers.