SK Hynix Surpasses Samsung: The Impact of a 14-Year AI Chip Investment on South Korea’s Leading Listed Company
Fourteen years after its acquisition by SK Group, SK Hynix has emerged as a key player in the artificial intelligence sector, briefly surpassing Samsung Electronics to become South Korea’s most valuable listed company. This shift is largely attributed to the company’s early investment in high-bandwidth memory (HBM) chips, which have become essential for AI applications like ChatGPT. The acquisition in 2012 was met with skepticism, as Samsung’s market value was over ten times that of SK Hynix at the time.
To differentiate itself, SK Hynix focused on HBM technology, which allows for faster data transfer compared to conventional memory. The company launched the world’s first HBM chip in collaboration with AMD in 2014. However, it faced challenges with its second-generation products, allowing Samsung to regain its lead in the late 2010s. Internal discussions at SK Hynix even considered abandoning HBM, but the company opted to invest further in production capacity and technology redesign.
ChatGPT changed everything
The landscape shifted dramatically in late 2022 when OpenAI’s ChatGPT sparked a global AI investment boom. Demand for HBM chips surged as Nvidia’s AI accelerators became the preferred hardware for training AI models, positioning SK Hynix as Nvidia’s largest HBM supplier. Shim Dae-yong, who led HBM development at SK Hynix, remarked that the explosive growth in the HBM market was unexpected, but the company was prepared in terms of performance and capacity.
Initially, SK Hynix’s investments appeared misplaced after a downturn in demand from Nvidia and cryptocurrency miners in 2019. This left a newly built packaging facility underutilized, but the subsequent AI boom changed the company’s fortunes.
A company rebuilt after years of crises
Founded in 1983 as Hyundai Electronics, SK Hynix has navigated multiple crises, including a near-bankruptcy in 2001 due to falling memory chip prices. The company was rescued by creditor banks after several failed attempts to sell it, culminating in SK Group’s acquisition in 2012. This purchase faced criticism from credit rating agencies due to the semiconductor industry’s cyclical nature and high capital investment needs.
SK Group Chairman Chey Tae-won explained the acquisition’s goal was to transform Hynix from a commodity memory producer into a mainstream semiconductor company. Former HR executive Hyun Sun-yeop noted that the company’s underdog status influenced its strategy, driving a need for breakthrough innovations.
HBM reshapes the semiconductor race
SK Hynix’s focus on HBM technology allowed it to recover more swiftly than Samsung following the global memory downturn. Despite posting an operating loss of 7.73 trillion won in 2023, the company rebounded with a record operating profit in 2024 and briefly became the world’s largest DRAM maker in 2025. Business administration professor Shin Jae-yong remarked on the improbability of SK Hynix overtaking Samsung, emphasizing the significant investment required in the capital-intensive semiconductor industry.
AI success drives fresh expansion
The success of SK Hynix has positively impacted South Korea’s stock market and economy. The company plans to raise up to 45.45 trillion won (USD 29.43 billion) through the listing of American depositary receipts in July to expand its production capacity and broaden its investor base. Shares of SK Hynix have surged over 340% this year, reflecting strong investor confidence in sustained AI-driven demand for advanced memory chips. Although Samsung has regained its top market position following reports of potential share buybacks, SK Hynix’s rise illustrates the transformative impact of the AI boom on the global semiconductor industry.
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