Story
Montage Technology Shares Plunge as South Korean Unit Faces Antitrust Probe
Chinese memory interface chip maker Montage Technology Co Ltd (688008.SS) is under investigation by South Korean prosecutors for a potential competition law violation, a disclosure that sent its shares tumbling in Shanghai trading. The company confirmed the probe into one of its local units in a filing on Friday.
Investigation Details
According to the company, the Seoul Central District Prosecutors' Office conducted an on-site search and seizure at the office of a Montage group member on July 15. The investigation is related to a potential breach of competition laws.
Montage stated that neither the company nor its employees have been charged with any wrongdoing and that it is fully cooperating with the authorities. It also assured investors that its business operations remain normal.
Market Reaction and Financial Stakes
News of the investigation triggered a sharp sell-off in the company's stock. Shares of Montage Technology fell 9.1% in Shanghai on Friday, significantly underperforming the broader CSI 1000 index, which declined 4%.
AdThe probe carries significant financial risk for Montage, as South Korea represents a critical market. According to the company's filing, the country accounted for approximately RMB 2.93 billion of its RMB 5.46 billion in total revenue for 2025, representing more than half of its sales.
Context and Outlook
Montage Technology develops semiconductor products, including memory interface chips used in servers and data centers, and is deeply integrated into South Korea's memory chip ecosystem.
The company said it could not predict the timing or outcome of the probe, including whether it would lead to formal charges or have a material impact on its financial condition. Montage stated it would continue to monitor the situation and make further announcements as required.
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