SK Hynix has overtaken Samsung Electronics to become South Korea’s most valuable listed company, capping a remarkable turnaround for a chipmaker that was once on the brink of collapse and showcasing the transformative impact of artificial intelligence (AI) on the global semiconductor industry.
According to a recent Reuters report, shares of SK Hynix rose 5.6% on June 22, lifting the company’s market capitalisation to 2,080.4 trillion won (USD 1.35 trillion). Samsung Electronics, whose shares fell 0.14%, ended the day with a market value of 2,066.7 trillion won, excluding preferred shares. However, Samsung said its preferred shares should also be included in any market capitalisation calculation, which would place its valuation at 2,246.4 trillion won.
The milestone nevertheless reflects a significant shift in investor sentiment as demand for AI infrastructure reshapes the semiconductor sector. SK Hynix has emerged as a leading supplier of high-bandwidth memory (HBM) chips, a specialised type of memory used in advanced AI systems developed by companies including Nvidia and Google’s parent company Alphabet.
The rapid growth of AI applications such as ChatGPT has increased demand for high-performance computing infrastructure, elevating HBM chips from a niche product to a critical component in modern AI systems. Unlike conventional memory products, HBM chips are closely integrated with AI processors and are valued for their ability to deliver faster performance while consuming less power.
Analysts attribute SK Hynix’s rise to its decision to continue investing in HBM technology during a prolonged downturn in the memory chip market. The strategy positioned the company to benefit from a surge in AI-related spending by technology firms including Microsoft, Google and Meta.
By 2025, SK Hynix had captured an estimated 61% of the global HBM market, significantly ahead of Samsung’s 17% share and Micron’s 21%, according to industry estimates cited by Reuters.
The company’s rise marks one of the most notable corporate recoveries in South Korea’s history. In 2002, then-Hynix Semiconductor was struggling under heavy debt and came close to being acquired by Micron. After the deal collapsed, the company remained under creditor control for nearly a decade. Its shares fell to as low as 135 won in 2003, leaving it widely viewed as a penny stock – shares that trade at very low prices.
In 2023, falling memory prices contributed to an annual operating loss of 7.73 trillion won. However, the company returned to profitability as AI investment accelerated, reporting a record annual operating profit of 23.5 trillion won in 2024.
Founded in 1983 as part of Hyundai, the company was later acquired by SK Group, one of South Korea’s largest family-controlled conglomerates.
The company’s growing influence also poses a challenge to Samsung’s long-standing dominance in the memory chip sector. Analysts expect SK Hynix to continue expanding production capacity in the coming years, narrowing the gap with Samsung in dynamic random-access memory (DRAM) manufacturing.
