SK Hynix overtakes Samsung, becomes most valuable company in South Korea
SK Hynix has overtaken Samsung Electronics to become South Korea's most valuable company, ending Samsung's decades-long dominance.
South Korean semiconductor company SK Hynix has overtaken Samsung Electronics to become the country's most valuable listed company. The milestone ends Samsung's more than two-decade hold on the top spot and caps a remarkable turnaround for SK Hynix, which was weighed down by debt and fighting for survival in the early 2000s.
The shift also comes at a time when the artificial intelligence boom is reshaping the global semiconductor industry. While Samsung still remains one of the world's largest technology companies, with businesses spanning smartphones, TVs, appliances and semiconductors, investors have been increasingly favoured companies that are directly tied to AI infrastructure.
But with its early focus on HBM chips, SK Hynix managed to position itself at the centre of the AI boom, helping it overtake Samsung and become South Korea's most valuable listed company.
At the centre of SK Hynix's rise is its dominance in High Bandwidth Memory (HBM), a specialised type of memory chip used alongside AI processors in data centres. These chips are critical for running large AI models such as ChatGPT and are widely used by technology giants including Nvidia and Google. Unlike traditional memory chips, HBM is stacked vertically, enabling faster data processing while consuming less power.
According to industry analysts, the emergence of customised AI memory has fundamentally changed the economics of the semiconductor sector. What was once considered a commodity business has become a strategic part of the AI ecosystem. By 2025, SK Hynix had captured around 61 per cent of the global HBM market, comfortably ahead of Samsung's 17 per cent and Micron's 21 per cent.
From downturn to the top spot
The company's ascent is particularly remarkable given its troubled past. In the early 2000s, then known as Hynix Semiconductor, the company was struggling under heavy debt and came close to being sold to US chipmaker Micron. The deal ultimately fell through, and the company remained under creditor control for nearly a decade. At one point in 2003, its shares fell as low as 135 won, earning it the reputation of a penny stock in South Korea.
More recently, SK Hynix had to navigate a severe downturn in the memory market. In 2023, falling memory prices pushed the company to an annual operating loss of 7.73 trillion won.
However, it continued investing aggressively in HBM technology while competitors focused on cost controls. That strategy ultimately paid off as AI spending accelerated worldwide. As companies including Microsoft, Google and Meta ramped up investments in AI infrastructure, SK Hynix reported a record operating profit of 23.5 trillion won in 2024.
Analysts believe the company's momentum could continue. Bank of America estimates that SK Hynix will significantly narrow the gap with Samsung in DRAM production over the next few years, further strengthening its position in the memory market, via Reuters. The company is also reportedly considering a Nasdaq listing in the US, a move that could broaden its investor base and raise its global profile.
South Korean semiconductor company SK Hynix has overtaken Samsung Electronics to become the country's most valuable listed company. The milestone ends Samsung's more than two-decade hold on the top spot and caps a remarkable turnaround for SK Hynix, which was weighed down by debt and fighting for survival in the early 2000s.
The shift also comes at a time when the artificial intelligence boom is reshaping the global semiconductor industry. While Samsung still remains one of the world's largest technology companies, with businesses spanning smartphones, TVs, appliances and semiconductors, investors have been increasingly favoured companies that are directly tied to AI infrastructure.
But with its early focus on HBM chips, SK Hynix managed to position itself at the centre of the AI boom, helping it overtake Samsung and become South Korea's most valuable listed company.
At the centre of SK Hynix's rise is its dominance in High Bandwidth Memory (HBM), a specialised type of memory chip used alongside AI processors in data centres. These chips are critical for running large AI models such as ChatGPT and are widely used by technology giants including Nvidia and Google. Unlike traditional memory chips, HBM is stacked vertically, enabling faster data processing while consuming less power.
According to industry analysts, the emergence of customised AI memory has fundamentally changed the economics of the semiconductor sector. What was once considered a commodity business has become a strategic part of the AI ecosystem. By 2025, SK Hynix had captured around 61 per cent of the global HBM market, comfortably ahead of Samsung's 17 per cent and Micron's 21 per cent.
From downturn to the top spot
The company's ascent is particularly remarkable given its troubled past. In the early 2000s, then known as Hynix Semiconductor, the company was struggling under heavy debt and came close to being sold to US chipmaker Micron. The deal ultimately fell through, and the company remained under creditor control for nearly a decade. At one point in 2003, its shares fell as low as 135 won, earning it the reputation of a penny stock in South Korea.
More recently, SK Hynix had to navigate a severe downturn in the memory market. In 2023, falling memory prices pushed the company to an annual operating loss of 7.73 trillion won.
However, it continued investing aggressively in HBM technology while competitors focused on cost controls. That strategy ultimately paid off as AI spending accelerated worldwide. As companies including Microsoft, Google and Meta ramped up investments in AI infrastructure, SK Hynix reported a record operating profit of 23.5 trillion won in 2024.
Analysts believe the company's momentum could continue. Bank of America estimates that SK Hynix will significantly narrow the gap with Samsung in DRAM production over the next few years, further strengthening its position in the memory market, via Reuters. The company is also reportedly considering a Nasdaq listing in the US, a move that could broaden its investor base and raise its global profile.
