Korean Manufacturers Dominate Chip Market with Record Capitalization in February

South Korea’s two main technology giants, Samsung Electronics and SK Hynix, have solidified their position as key players in the global economy by amassing a combined market capitalization of $1.11 trillion. The upward trajectory of these Korean companies reflects a structural transformation: the semiconductor market has shifted from a peripheral segment to the core of investment strategies in artificial intelligence infrastructure. This movement has redirected billions of dollars in capital flows to South Korean suppliers, positioning them favorably within the supply chain that powers global giants like Nvidia.

Samsung and SK Hynix: Leading the AI Revolution in the Supply Chain

The rise of these Korean corporations is no accident. According to Yiping Liao, portfolio manager at Franklin Templeton Global Investment, South Korea’s strategic focus on specific segments of the tech supply chain has catalyzed the exponential appreciation of both companies’ stocks. The trigger for this performance was an unprecedented scenario: a prolonged shortage of memory chips that drove prices to historic levels.

Simon Woo, head of research at BofA Global Research in Seoul, offers an even more ambitious long-term perspective. He predicts that this supercycle of demand for memory chips will extend until 2027, signaling that the industry is undergoing a profound and lasting transformation.

Memory Chips: From Secondary Component to Strategic Asset

What differentiates the current cycle from previous periods is a fundamental change in the role of memory chips. Historically, these components were treated as commodities—interchangeable and easily disposable elements in personal computers and smartphones. Today, American tech giants consider memory chips as critical strategic assets for their operations.

This reclassification has significantly elevated the prestige and importance of the South Korean memory industry on the international stage. Timothy Moe, head of Asia-Pacific equity strategy at Goldman Sachs, quantifies this importance: the semiconductor sector is expected to contribute approximately 60% of the projected profit growth for Korean stocks this year.

Growth Outlook and the Supercycle Until 2027

The current context reveals multiple layers of opportunity for Korean companies. Sustained demand for memory chips, driven by the expansion of global AI infrastructure, provides visibility for continued growth. Projections from leading financial institutions indicate that Korean manufacturers will remain at the epicenter of this technological transformation until at least 2027, when the supercycle is expected to peak.

This strategic positioning not only benefits the two South Korean giants but also reinforces South Korea’s geopolitical importance as an indispensable supplier for future technological infrastructure. The memory chip market, once considered secondary, has become a fundamental pillar of the global digital economy.