SK Hynix overtook Samsung Electronics on June 22, ending Samsung’s uninterrupted position as South Korea’s most valuable listed company, a title it had held since 2000. The achievement reflects the growing importance of AI infrastructure and the critical role SK Hynix plays in supplying advanced memory chips used in artificial intelligence systems.
The company’s rise has been driven by soaring demand for HBM chips, which are widely used in AI servers and accelerators developed by companies such as Nvidia and Google.
AI Memory Boom Powers SK Hynix Higher
Shares of SK Hynix surged more than 5% on Monday, pushing the company’s market capitalization to approximately 2,082.5 trillion won, or about $1.35 trillion. Samsung Electronics stood close behind with a market value of roughly 2,081.3 trillion won based on common shares.
The achievement underscores how AI has transformed the semiconductor sector. What were once viewed largely as commodity memory products have become essential components of modern AI infrastructure.
SK Hynix has emerged as the dominant supplier of high-bandwidth memory, a specialized chip technology that enables AI processors to handle enormous amounts of data at high speeds. The company currently controls about 61% of the global HBM market, significantly ahead of rivals Samsung and Micron.
Kim Sunwoo, a senior analyst at Meritz Securities, said:
“The emergence of customised AI memory fundamentally changed the industry’s economics and allowed SK Hynix to establish itself as the market leader.
Kim Sunwoo
Senior analyst – Meritz Securities
A Historic Reversal of Fortunes
The milestone represents one of the most dramatic corporate turnarounds in South Korean history.
In 2002, the company, then known as Hynix Semiconductor, was struggling under heavy debt and came close to being sold to Micron. The deal eventually fell apart, and the company spent years under creditor control. Its shares plunged to just 135 won in 2003, leading many investors to view it as a penny stock.
The company’s fortunes continued to fluctuate with the cyclical memory chip industry. As recently as 2023, a sharp downturn in memory prices contributed to a yearly operating loss of 7.73 trillion won.
However, the rise of artificial intelligence dramatically changed its trajectory. Increased spending by major technology companies, including Microsoft, Google, and Meta, fueled demand for advanced memory solutions. By 2024, SK Hynix reported a record annual operating profit of 23.5 trillion won, reflecting the industry’s rapid recovery.
Strategic Bet on HBM Pays Off
Industry analysts credit SK Hynix’s success to its decision to continue investing in HBM technology during a difficult period for the memory market.
Unlike conventional memory products, HBM chips are tightly integrated with AI processors and offer faster performance while consuming less power. The technology is difficult to manufacture and qualify, creating higher barriers to entry and stronger pricing power for suppliers.
SK Group Chairman Chey Tae-won explained the vision behind acquiring Hynix years ago.
“What I really wanted to accomplish when we acquired Hynix was to transform it from a commodity memory producer into a mainstream semiconductor company whose products are indispensable.
In the past, it did not matter whether memory came from Hynix, Samsung or Micron. They were interchangeable commodity products. HBM is different. If SK Hynix’s HBM is replaced with another product, the AI system may not function properly. What used to be a peripheral component has become a core component.
Chey Tae-won
Chairman – SK Group
Competition With Samsung Continues
Despite losing the top spot based on common shares, Samsung argued that its preferred shares should be included when calculating market value. Including those shares would place Samsung’s valuation above SK Hynix.
The competition between the two chipmakers is far from over. Samsung remains the world’s largest DRAM producer by manufacturing scale. However, analysts expect SK Hynix to continue expanding production capacity and narrowing the gap over the coming years.
Reports have also indicated that SK Hynix is considering a future U.S. listing, potentially on the Nasdaq, a move that could broaden its investor base and strengthen its global profile.