South Korean chips break the $1.11 trillion barrier: how AI redefined their strategic value

FloorPriceNightmare · 2026-02-12T19:04:50+00:00

In early 2025, Samsung Electronics and SK Hynix reached a combined market capitalization of $1.11 trillion, highlighting South Korea's critical role in the global semiconductor supply chain. This surge reflects a strategic shift in tech investments towards chip infrastructure, driven by the AI boom. Analysts note that leading tech firms increasingly rely on South Korean suppliers, which have transformed memory chips from disposable components to strategic assets. Projections indicate a continued semiconductor supercycle through 2027, with the sector expected to contribute significantly to South Korean stock growth, underscoring its geopolitical importance in the AI race.

FloorPriceNightmare

2026-02-12 19:04:50

Abstract generation in progress

In the first weeks of 2025, South Korea’s two tech giants, Samsung Electronics and SK Hynix, achieved a combined market capitalization of $1.11 trillion, a milestone that reinforces South Korea’s position as a critical supplier in the global semiconductor supply chain. This rapid surge in stock prices reflects a fundamental shift in technology investment: the reallocation of resources toward chip infrastructure, especially those needed to fuel the AI boom.

According to analysts at Jin10, this phenomenon is not random. Industry leaders like Nvidia increasingly depend on strategically positioned South Korean suppliers in key segments of the production chain. Yiping Liao, portfolio manager at Franklin Templeton Global Investment, explains directly: South Korea’s focus on specific technology niches has catalyzed extraordinary gains in the valuation of companies like Hynix and Samsung. The underlying driver of this phenomenon is an unprecedented cycle of shortage in memory chips, components that are becoming increasingly critical in AI systems.

The transformation: from consumables to strategic assets

The perception shift regarding memory semiconductors is radical. Simon Woo, head of Korea research at BofA Global Research in Seoul, notes that these chips are no longer considered simple disposable components for personal computers and mobile phones. Today, they are recognized as fundamental strategic assets for American tech giants, dramatically elevating the status of the entire memory industry.

Semiconductor supercycle: projections through 2027

Expert forecasts point to a continuation of this trend. Simon Woo anticipates that the memory chip supercycle will extend until 2027, during which demand will keep pressure on prices and valuations. Timothy Moe, chief Asia-Pacific equity strategist at Goldman Sachs, goes further: he projects that the semiconductor sector will contribute approximately 60% of the expected earnings growth for South Korean stocks this year. This figure underscores how central the chip industry has become in driving the performance of local stock markets.

The current scenario consolidates South Korea as the epicenter of the global technological transition, where memory chips not only represent financial profitability but also geopolitical power in the competition for AI leadership.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.