SK hynix CEO Vows to Defend Memory Dominance With New Global Fabs

South Korea's KOSPI briefly rose above 7,000, then fell to 6,956.25. Samsung Electronics gained 3.26%, while SK hynix added 0.27%. Brokerages set near-term ceilings between 7,400 and 8,000. Samsung reported record Q2 revenue of KRW 171.5 trillion and operating profit of KRW 89.5 trillion.

Samsung Electronics (005930.KS) and SK hynix (000660.KS) are nearing early completion of their share buyback programs, potentially finishing by mid-October. Samsung has bought 74.69% of its target, spending 10.31 trillion won, while SK hynix has purchased 58.79% of its target, spending 24.39 trillion won. The early completion may increase volatility in the Korean stock market, as the buybacks have supported the KOSPI index.

HanmiGlobal will manage the construction of SK Hynix's $4 billion HBM packaging plant in Indiana, USA. The facility, SK Hynix's first AI memory production base in the U.S., is set for completion in 2028 with mass production starting in 2029. HanmiGlobal will oversee coordination, process, and cost management for the project.

The strengthening Korean won is reducing third-quarter earnings estimates for major electronics firms like Samsung Electronics and SK hynix, as their dollar-denominated revenues shrink when converted to won. Brokerages have cut profit forecasts, with Samsung's consensus operating profit dropping 9% and SK hynix's falling 6.7% in recent weeks. Both companies have warned of significant profit reductions due to exchange rate fluctuations.

Doosan Corp. will invest $700M to expand AI chip substrate material production. SK Hynix considers a memory plant in Japan. Samsung Electronics agreed to supply HBM4 chips to AMD. SK Hynix to send HBM4 samples to Nvidia. These moves aim to bolster positions in the AI semiconductor and memory markets.

Samsung Electronics (005930) and SK Hynix (000660) are expected to complete their share buyback programs by mid-September, earlier than initially planned. Samsung has bought 39.8 million shares for 10.3 trillion won, while SK Hynix purchased 14.15 million shares for 24.39 trillion won. Their buybacks have supported the KOSPI index, but their conclusion may impact market stability. Analysts watch for third-quarter earnings and foreign fund inflows.