Storage-themed ETFs continued their slump on Wednesday, with South Korean tech stocks bearing the brunt of rising semiconductor equipment costs.

As of the time of writing, the CSOP SK hynix Daily Leveraged (2x) Product (07709) fell 7.85% to HK$32.6, while the CSOP Samsung Electronics Daily Leveraged (2x) Product (07747) dropped 2.93% to HK$70.22.

The declines followed reports that ASML has notified Samsung Electronics Co., Ltd. (SSNLF) and SK hynix (SKHY) of a price increase through its Korean subsidiary early last month, confirmed after negotiations between the two companies' procurement departments.

The price hike covers all components of both EUV and DUV lithography machines, including regularly purchased consumable parts as well as core components requiring replacement due to malfunctions or performance degradation, spanning optical systems, light sources, and precision drive devices.

The blanket 10% increase across all product lines is viewed by industry observers as an unusual move. Previously, ASML typically adjusted prices for individual components only when raw material costs surged significantly or when specific materials became difficult to procure.

Meanwhile, ASML is reportedly negotiating with major clients over price increases for new equipment, fueling expectations of higher prices for the machines themselves.

Industry consensus suggests that once Samsung Electronics Co., Ltd. (SSNLF) and SK hynix (SKHY) accept the price hikes, other equipment and component suppliers will gain greater leverage to push through their own price increase demands.