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SK Hynix has overtaken Samsung Electronics as South Korea’s most valuable publicly traded company, marking a remarkable turnaround for a chipmaker that once struggled under massive debt and faced an uncertain future.
The milestone comes as SK Hynix continues to benefit from the global artificial intelligence boom, thanks to its dominant position in the high-bandwidth memory (HBM) chip market. These advanced memory chips are critical for AI systems developed by major technology companies, including Nvidia and Google.
On Monday, SK Hynix shares climbed 5.6%, pushing its market capitalization to 2,080.4 trillion won ($1.35 trillion). In comparison, Samsung Electronics’ shares slipped 0.14%, leaving its market value at 2,066.7 trillion won, excluding preferred shares. The achievement ends Samsung’s long-held reign as the country’s most valuable listed company, a position it had maintained since 2000.
The rise of AI has transformed the semiconductor industry, turning specialized memory chips into essential infrastructure for applications such as ChatGPT and other advanced AI models. While Samsung operates across multiple sectors, including smartphones, televisions, and logic chips, SK Hynix has focused heavily on memory technology, allowing it to capitalize on surging AI demand.
Just a few years ago, the company faced significant challenges. A downturn in the memory market during 2023 led to an annual operating loss of 7.73 trillion won. However, the rapid expansion of AI investments by technology giants such as Microsoft, Google, and Meta fueled a strong recovery. By 2024, SK Hynix posted a record annual operating profit of 23.5 trillion won.
Industry analysts credit the company’s success to its decision to continue investing in HBM technology during difficult market conditions. Unlike conventional memory products, HBM chips are vertically stacked and closely integrated with AI processors, delivering faster performance and improved energy efficiency. The complexity of the technology creates higher barriers to entry and strengthens pricing power for suppliers.
By 2025, SK Hynix controlled approximately 61% of the global HBM market, significantly ahead of Samsung’s 17% share and Micron’s 21%.
Founded in 1983 as part of Hyundai, the company was later acquired by SK Group, a major South Korean conglomerate. SK Group Chairman Chey Tae-won recently explained that the goal of acquiring Hynix was to transform it from a commodity memory manufacturer into a provider of indispensable semiconductor technology.
According to Chey, traditional memory chips were largely interchangeable regardless of the manufacturer. HBM, however, has become a critical component in AI systems, making supplier expertise and product quality far more important.
Analysts also believe Samsung’s leadership in the global DRAM market could face increasing pressure. Estimates from Bank of America suggest SK Hynix’s DRAM production capacity will continue expanding at a faster pace than Samsung’s through 2028, narrowing the gap between the two rivals.
The company’s growing influence may increase further as it prepares for a potential U.S. stock market listing. Reports indicate SK Hynix is considering the Nasdaq for its planned U.S. debut, a move that could broaden its investor base and enhance its global profile.
