The milestone reflects how deeply the global artificial intelligence boom has reshaped the semiconductor industry, elevating specialised memory chips into some of the most strategically important components in modern computing infrastructure.
On Monday, SK Hynix closed with a market capitalisation of 2,080.4 trillion won ($1.35 trillion), edging past Samsung Electronics, which stood at 2,066.7 trillion won based on common shares. Samsung noted that including preferred shares, its valuation would rise to 2,246.4 trillion won, but the symbolic shift in ranking still marks a major turning point in South Korea’s corporate hierarchy.
At the centre of SK Hynix’s rise is its dominance in high-bandwidth memory (HBM), a specialised form of memory designed for AI workloads and used in systems powered by companies such as Nvidia and Alphabet. These chips are tightly integrated with AI processors, enabling faster data processing and lower energy consumption — critical requirements for large-scale models like ChatGPT-style systems.
Shares in SK Hynix have surged more than 340% this year alone, making it not only South Korea’s most valuable chipmaker but also one of the clearest equity winners of the global AI investment cycle.
Unlike Samsung, which operates across a broader electronics portfolio including smartphones and consumer devices, SK Hynix is heavily focused on memory semiconductors. That specialisation has allowed it to move aggressively into HBM technology, which analysts say carries higher margins and stronger pricing power than traditional memory chips.
“The emergence of customised AI memory fundamentally changed the industry’s economics and allowed SK Hynix to establish itself as the market leader,” said Kim Sunwoo, a senior analyst at Meritz Securities.
The company’s trajectory is especially notable given its history. In the early 2000s, then-Hynix Semiconductor nearly collapsed under debt and was viewed as a penny stock after its share price plunged to just 135 won in 2003. It survived a failed acquisition attempt by Micron and remained under creditor control for years before stabilising under SK Group ownership.
Today, that past stands in stark contrast to its current position as the world’s leading producer of memory chips used in AI systems.
SK Hynix now holds about 61% of the global HBM market, compared with Samsung’s 17% and Micron’s 21%, underscoring how quickly the competitive landscape has shifted in its favour.
Chairman Chey Tae-won, reflecting on the acquisition years later, described the strategic pivot in blunt terms: “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.”
He added: “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.”
Industry analysts say Samsung’s long-standing dominance in memory chips is now being tested more seriously than at any point in decades. While Samsung still leads in total DRAM production, SK Hynix is closing the gap, with projections suggesting its output growth could significantly narrow the difference by 2028.
Bank of America estimates Samsung currently produces about 691,000 wafers monthly compared with SK Hynix’s 589,000, but forecasts suggest SK Hynix could expand capacity much faster over the coming years.
For Samsung, which has led South Korea’s market capitalisation rankings since 2000, the loss of the top spot to a rival once considered financially fragile marks a symbolic shift in the global semiconductor hierarchy — one driven not by scale alone, but by alignment with the rapidly expanding AI economy.
SK Hynix’s momentum is now expected to extend further into global markets, with reports indicating the company is preparing a Nasdaq listing aimed at widening its investor base and strengthening its international profile.