sk hynix overtakes samsung as south korea’s largest publicly listed company

At a glance:

• SK Hynix overtook Samsung as South Korea’s largest publicly listed company, with a market cap of about $1.35 trillion.
• The surge is driven by SK Hynix’s 61 % share of the high‑bandwidth memory (HBM) market, a key component in AI systems for NVIDIA, Microsoft and Google.
• By 2028 SK Hynix expects to narrow its DRAM production gap to Samsung to roughly 10 %, targeting 589,000 wafers versus Samsung’s 691,000.

What happened

The Reuters‑reported shift in market capitalization came in late 2023, when SK Hynix reached 2,080.4 trillion won ($1.35 trillion) compared with Samsung’s 2,066.7 trillion won ($1.34 trillion) when preferred shares are excluded. This marks the first time a South‑Korean company other than Samsung has held the top spot on the country’s stock market.

Samsung, which had held the crown for more than 25 years, noted that its valuation would climb to 2,246.4 trillion won (~$1.46 trillion) if preferred shares were counted. The difference underscores how the inclusion or exclusion of certain share classes can shift headline numbers.

Why HBM matters

High‑bandwidth memory (HBM) has become a critical component for artificial‑intelligence workloads. SK Hynix currently dominates the market with a 61 % share, leaving Micron at 21 % and Samsung at 17 %. Unlike conventional memory, HBM is tightly integrated into GPUs and AI accelerators; swapping it out can render an entire system inoperable.

SK Group chairman Chey Tae‑won explained, "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." This shift from a peripheral to a core technology has amplified SK Hynix’s valuation.

DRAM production trajectory

While Samsung still leads in DRAM output, SK Hynix is steadily catching up. Bank of America estimates that the production gap will shrink to about 10 % by 2028. In 2023 SK Hynix is already slated to produce roughly 589,000 DRAM wafers, compared with Samsung’s 691,000.

This expansion is part of a broader strategy to diversify beyond HBM. By bolstering its DRAM capacity, SK Hynix positions itself as a more comprehensive memory supplier for the AI ecosystem.

Historical backdrop

SK Hynix’s rise is punctuated by a turbulent past. The company almost collapsed in 2002 when it was on the brink of being sold to Micron. In 2003, its shares were trading at just 135 won (~$0.088), a penny‑stock valuation. Its subsequent survival and aggressive investment in HBM during a sluggish memory market laid the groundwork for its current dominance.

The company’s resilience is reflected in its current market leadership and the confidence of major AI players that rely on its products.

Industry implications

The shift in market cap signals a broader realignment of power within the semiconductor industry. As AI workloads grow, demand for specialized memory such as HBM will continue to outpace conventional DRAM, rewarding firms that have built deep expertise in the niche.

For investors, the story highlights the importance of looking beyond headline market caps to understand the underlying technology trends that drive valuation. For manufacturers, it underscores the need to invest early in emerging memory technologies to secure a foothold in the AI supply chain.

Looking ahead

SK Hynix’s trajectory suggests that the company will remain a key player in the AI memory space for the foreseeable future. Its plan to close the DRAM production gap by 2028, coupled with its continued HBM dominance, could further elevate its market position. Meanwhile, Samsung’s focus on expanding its own memory production and incorporating preferred shares into its valuation may help it regain some ground in the coming years.