Chip, chip... boom? South Korea tech makers join the trillion-dollar club but some fear a short-circuit looms
Key points
- South Korea has leapfrogged India to become the worldâs sixth largest share market, leaving equity markets in the UK, Germany and France trailing in its dust.
- But despite the runaway success, some are raising concerns that the Kospi index is too dependent on two freshly minted trillion-dollar chipmaking companies.
- Chip company SK Hynix last week claimed a seat in Asiaâs trillion-dollar company club, alongside South Korean compatriot Samsung Electronics and Taiwanâs TSMC.
- Explosive demand for chips used in AI has propelled the trio past the valuation threshold.
- SK Hynixâs share price has skyrocketed 1,000% over the past year, while Samsung has soared 500%.
Quick Summary
South Korea has leapfrogged India to become the worldâs sixth largest share market, leaving equity markets in the UK, Germany and France trailing in its
Why It Matters
This development is important because it may impact public opinion, policy decisions, and future developments related to Chip, chip... boom? South Korea tech makers join the trillio.
Key Takeaways
- South Korea has leapfrogged India to become the worldâs sixth largest share market, leaving equity markets in the UK, Germany and France trailing in its dust.
- But despite the runaway success, some are raising concerns that the Kospi index is too dependent on two freshly minted trillion-dollar chipmaking companies.
- Chip company SK Hynix last week claimed a seat in Asiaâs trillion-dollar company club, alongside South Korean compatriot Samsung Electronics and Taiwanâs TSMC.
- Explosive demand for chips used in AI has propelled the trio past the valuation threshold.
- SK Hynixâs share price has skyrocketed 1,000% over the past year, while Samsung has soared 500%.
đ Source: The Guardian
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