SK Hynix has overtaken Samsung Electronics to become the most valuable publicly traded company in South Korea, marking a striking turnaround for the memory-chip maker. In Monday trading the company's shares rose 5.7 percent, pushing its market capitalization to 2,082.5 trillion won (about $1.35 trillion), narrowly ahead of Samsung Electronics' market value of 2,081.3 trillion won.
The figures and their significance
Samsung Electronics noted that when preferred shares are included, its total market value remains higher, at roughly 2,252 trillion won. SK Hynix's ascent has been driven largely by explosive demand for high-bandwidth memory (HBM), specialized vertically stacked dies that are key components in artificial intelligence systems and are used by technology companies such as Nvidia and Google.
HBM products integrate closely with AI processors, creating higher barriers to entry and greater pricing power for manufacturers compared with traditional memory. By 2025 SK Hynix had captured 61 percent of the global HBM market, while Micron held 21 percent and Samsung 17 percent.
From near-collapse to record profit
The company's history includes severe setbacks. In 2002, operating as Hynix Semiconductor, aggressive expansion left it heavily indebted and a planned sale to Micron nearly went through before collapsing. The firm then operated under creditor oversight for almost a decade and its shares plunged to a low of 135 won in 2003.
The decisive change came when SK Hynix continued to invest in HBM development through an industry downturn. After an operating loss of 7.73 trillion won in 2023, the company reported a record operating profit of 23.5 trillion won in 2024.
Outlook and competitive dynamics
According to Bank of America projections, the gap in DRAM manufacturing capacity between SK Hynix and Samsung could shrink from 23 percent to under 10 percent by 2028. That expectation reflects SK Hynix's plan for about a 38 percent capacity expansion versus Samsung's projected 17.5 percent growth.
To broaden its investor base, SK Hynix is also planning a potential U.S. listing on the Nasdaq.
Why this matters
The episode highlights how rapidly surging AI demand is reshaping competition and valuations in the semiconductor industry. SK Hynix's case shows that sustained investment in a technology critical to AI, such as HBM, can translate into a substantial market advantage.
This article does not constitute investment advice or a recommendation.
