South Korea’s giant company Samsung Electronics’ market value has crossed $1 trillion, which is approximately ₹95.08 lakh crore. Due to the increasing demand for Artificial Intelligence (AI) chips, the shares of this world’s largest memory chip maker company have surged by about 400% in the past year. During trading on Wednesday, Samsung’s shares have jumped by 15%. With this, Samsung has become the second company in Asia after Taiwan’s TSMC to achieve this milestone. Korean market surges, Kospi index crosses 7,400 The impact of this surge in Samsung’s shares was also visible on South Korea’s benchmark index Kospi, which crossed above the 7,400 level. Along with Samsung, companies like SK Hynix and TSMC are establishing Asia as a major hub in the global AI ecosystem. Dominance in Chip Manufacturing and Investor Confidence Dominance in semiconductor manufacturing and increasing investment in data infrastructure have attracted investors towards chipmakers. Due to this trend, a massive rally is being witnessed in technology stocks. In the last one month, SK Hynix shares have recorded a gain of over 81% and TSMC has recorded a gain of 21.77%. Samsung’s Profit Surges 48 Times Earlier, in the March quarter, Samsung’s semiconductor division saw a massive growth of 48 times in profit on a year-on-year basis. Strong demand from AI-based data centers and better margins have taken the company’s earnings to new heights. Discussion of Potential Partnership with Apple According to reports, tech giant Apple Inc has held preliminary talks with Samsung to manufacture processors for its devices in America. If this deal is finalized, it will create a major alternative for Apple to reduce its long-standing dependence on TSMC. What are Memory Chips and AI Chips? Memory Chip: It works to store data. Samsung is the world’s largest producer of these. AI Chip: These are special types of processors that are made to quickly process the heavy calculations of Artificial Intelligence. These are most needed in AI data centers.
