Samsung and SK Hynix Pivot to AI-Driven Foundry and NAND Expansion Amid Regional Market Volatility

By / / Breaking News

This update was written automatically with AI from market data and news wire reports, and published without review by a person.

Key Takeaways

  • Samsung Electronics (005930) reported a record-breaking KRW 107.4 trillion ($80.4 billion) in Q3 operating profit, driven by surging AI chip demand, while announcing a massive KRW 84.4 trillion ($63.2 billion) 2026 capex plan focused on advanced 2nm foundry capacity.
  • SK Hynix (000660) subsidiary Solidigm is in advanced negotiations with the U.S. Department of Commerce for a potential $45 billion NAND flash plant, though final approval remains contingent on equipment export permits for its existing Dalian, China facility.
  • South Korean and Japanese markets showed high volatility as the KOSPI fell 2.4% and the Nikkei 225 erased early gains to trade flat, with investors bracing for the Bank of Japan’s upcoming policy announcement.
  • The Korean Won appreciated slightly to 1,332.70 against the US Dollar, even as Samsung warned of a quarter-on-quarter revenue decline for its mobile division in Q4 due to rising component costs and a shift in product mix.

Samsung Sets Record Profit, Doubles Down on Foundry

Samsung Electronics (005930) has solidified its lead in the AI era, reporting a historic KRW 107.4 trillion in quarterly operating profit for Q3 2026. This performance marks the first time a global technology firm has surpassed the KRW 100 trillion threshold in a single quarter, fueled by a 9-fold increase in year-over-year earnings from its semiconductor division.

To sustain this momentum, the company is ramping up investments in its Taylor, Texas and South Korean foundry operations. Samsung plans to achieve a total 2-nanometer production capacity of 20,000 wafers per month by the second half of 2027, leveraging its new U.S. facility to meet aggressive demand for high-performance computing (HPC) and AI applications.

SK Hynix and Solidigm’s U.S. Ambitions

SK Hynix (000660) is exploring a major expansion of its U.S. footprint through its subsidiary, Solidigm. Reports indicate the company is discussing a $45 billion investment for a new NAND flash manufacturing plant, with New York emerging as a primary candidate for the site.

However, the deal faces a complex geopolitical hurdle. Solidigm is reportedly seeking U.S. government permission to upgrade its existing plant in Dalian, China, arguing that the revenue generated from the Chinese facility is essential to financing the multi-billion dollar American project.

Regional Markets React to Central Bank Uncertainty

Asian markets experienced a turbulent session on Thursday as investors awaited the Bank of Japan's (BOJ) policy decision. While the BOJ is widely expected to hold rates at 1.25%, JGB yields moved higher as traders positioned for potentially hawkish guidance regarding a December rate hike.

In Seoul, the KOSPI slumped 2.4%, reversing recent gains despite the stellar earnings from major chipmakers. The Korean Won saw a modest appreciation to 1,332.70 per dollar, though market sentiment remained cautious due to projected revenue headwinds in Samsung’s mobile business and broader concerns over the sustainability of the AI spending cycle.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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