Samsung, SK Hynix shares leap after OpenAI chip deal
![Item 1 of 3 A Samsung Electronics logo and a computer motherboard appear in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration [1/3]A Samsung Electronics logo and a computer motherboard appear in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab](/_next/image?url=https%3A%2F%2Fwww.reuters.com%2Fresizer%2Fv2%2F43SUW2D6SZNEVE5W7LJWOZSOQU.jpg%3Fauth%3Dad93f2f983b5d1fda4c41a88a4ff49b15399dfa287e30ab6f95b35175a5ded94%26width%3D1200%26quality%3D80&w=1920&q=75)
News Summary
Shares of South Korea's Samsung Electronics and SK Hynix jumped 4.7% and soared 12% respectively, following a partnership deal with OpenAI to support its expansive Stargate artificial intelligence data centre project. The collaboration propelled Samsung shares to a four-year high and SK Hynix to an all-time high, adding a combined $37 billion to their market capitalization. Analysts anticipate the deal will alleviate concerns about high bandwidth memory (HBM) chip prices potentially falling next year due to intensifying competition, forecasting a significant surge in demand. OpenAI, a participant in President Trump's $500 billion Stargate private-sector initiative to build U.S. AI infrastructure, also agreed to establish two data centres in South Korea, aiming to position Seoul as an AI hub in Asia and solidify OpenAI's presence in the country. The global AI boom continues to drive strong semiconductor demand, contributing to South Korea's fastest export growth in 14 months in September, despite U.S. tariffs. Furthermore, analysts suggest the partnership could positively influence South Korea's ongoing trade negotiations with the U.S. South Korea aims to formalize a preliminary trade deal with the Trump administration by late October to lower U.S. tariffs, but talks have stalled over Seoul's concerns regarding the foreign exchange implications and structure of the investment package.
Background
The robust global demand for artificial intelligence (AI) technologies is fueling a boom in the semiconductor industry, particularly for high bandwidth memory (HBM) chips, which are indispensable components for AI computing. This presents significant growth opportunities for leading chipmakers like Samsung and SK Hynix. President Trump's administration has launched a $500 billion Stargate private-sector initiative aimed at substantially boosting AI infrastructure within the U.S. Concurrently, U.S. tariffs on South Korean exports have impacted trade, though strong semiconductor shipments are partially offsetting these effects. Bilateral trade negotiations between South Korea and the U.S. are ongoing, covering tariff reductions and South Korean investment in the U.S.
In-Depth AI Insights
What are the strategic implications of this partnership for South Korea's semiconductor industry? - This goes beyond just increased orders; it elevates South Korea's strategic position in global AI infrastructure development. By collaborating with OpenAI to establish data centers in South Korea, the nation is actively positioning itself as an AI hub in Asia, enhancing its influence in the global digital economy. - It solidifies South Korea's leadership in the HBM chip sector. Amid intensifying competition in the HBM market, this deal provides critical long-term demand assurance for Korean chipmakers and could grant them greater leverage in setting technological standards. How might President Trump's Stargate initiative influence global AI supply chains and geopolitical dynamics? - The Trump administration's massive private-sector initiative aims to secure U.S. leadership in AI infrastructure and reduce reliance on potential rivals like China. By directing OpenAI's collaboration towards key South Korean chip suppliers, the U.S. is strengthening the role of its allies in critical technology supply chains. - This also reflects a geopolitical strategy of leveraging economic ties. By integrating South Korea's chip manufacturing prowess with U.S. AI strategy, Washington aims to build a more resilient, allied-led AI ecosystem, which will reshape the global technological competitive landscape for years to come. How does this partnership alter the outlook for trade negotiations between South Korea and the U.S.? - This chip deal provides significant leverage for South Korea in its trade negotiations with the Trump administration. Deeply integrating South Korean companies into a crucial U.S. strategic initiative could soften Washington's stance on tariffs and investment structures. - However, South Korea's concerns over the foreign exchange implications and structure of the investment package persist, indicating that despite positive developments, negotiations are not without challenges. South Korea may seek to leverage this collaboration to secure terms more favorable to its economic and financial stability, rather than simply accepting U.S. demands.