Accordingly, the market value of chip maker SK Hynix increased to 90.8 trillion won (66.9 billion USD) on the morning of November 2, higher than the 89.9 trillion won of tech giant LG.
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| SK Hynix becomes South Korea's second largest company by market capitalization. |
SK Hynix is also a supplier of high-bandwidth memory to Nvidia, the world's largest chip company by market capitalization. Nvidia's shares have risen 66% this year.
Meanwhile, LG Energy Solution, a supplier to electric car maker Tesla, saw its capitalization fall 12% due to sluggish demand for electric vehicles.
The technology war between the two superpowers, the US and China, is pushing two Korean chip manufacturers, Samsung and SK Hynix, into a "dilemma", as both companies use technology or equipment from the US, while China is a big piece of the pie that no company wants to ignore.
“Given that domestic suppliers cannot compete in terms of capacity and technology, China will need Samsung, SK Hynix, Western Digital, Kioxia or other foreign suppliers to replace Micron. However, all of them are from US allies and rely on US-made equipment. We believe that the possibility of them ignoring US pressure and taking advantage of the Micron ban to gain market share in China is quite low,” said Mark Li, an analyst at C. Bernstein.
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