Samsung Electronics and SK hynix Market Cap Gap Reaches 13-Year Low

SEOUL: The market capitalization gap between South Korea's leading chipmakers, Samsung Electronics Co. and SK hynix Inc., has reached its narrowest point in over a decade, according to recent data released by the main stock exchange. According to Yonhap News Agency, as of October 25, Samsung Electronics accounted for 15.85 percent, or 333.7 trillion won (approximately US$240 billion), of the total value of stocks listed on the Korea Stock Price Index (KOSPI). Meanwhile, SK hynix's market capitalization reached 6.95 percent, or 146.3 trillion won, narrowing the gap between the two giants to 8.9 percent. This is the smallest gap recorded since 2011, when the difference was 8.84 percent. The shift in market dynamics comes as Samsung Electronics faces challenges, including a decline in share value due to lower-than-expected third-quarter earnings and delays in quality test approval for its high-bandwidth memory (HBM) chips intended for Nvidia Corp., a leading U.S. AI chipmaker. Conversely, SK hynix has seen a r ise in its share value, buoyed by a successful HBM supply deal with Nvidia and strong third-quarter earnings. SK hynix has further cemented its competitive position by beginning mass production of 12-layer HBM chips, a world first. The company plans to deliver new 36-gigabit 12-layer HBM3E chips to customers, including Nvidia, by year-end, marking a significant milestone in HBM technology advancement, surpassing competitors such as Samsung and Micron Technology Inc. The contrasting fortunes of the two companies are reflected in their stock performances this year. Samsung Electronics saw a 28 percent decline to 55,900 won, while SK hynix experienced a 42 percent increase, reaching 201,000 won.