SK Group Chairman Chey Tae-won has announced plans to invest tens of billions of dollars in the US artificial intelligence sector, concentrating market attention on South Korean semiconductor equipment stocks and AI infrastructure-related companies. The large-scale investment blueprint comes as semiconductor stocks recently plunged on concerns over slowing AI investment, fueling expectations for expanded memory production lines and increased equipment orders.

Chairman Chey stated in a CNBC interview on the 10th (local time), held to mark the Nasdaq listing of SK Hynix’s American Depositary Receipts (ADRs), that he anticipates “at least tens of billions of dollars in investment in the AI space.” He cited AI data centers, related technologies, startups, and joint ventures with partners as investment targets, while also leaving open the possibility of building a memory semiconductor production plant in the US. He emphasized the need for expanded production capacity, noting that “every Big Tech company is clamoring for more chips.”

These remarks have injected vitality into investment sentiment that had been dampened by the recent sharp decline in semiconductor stocks. According to the Korea Exchange, the KRX K-AI Semiconductor TOP2+ Index fell 18.52% from the 1st to the 10th of this month, while the KRX AI Semiconductor Index and KRX Semiconductor TOP15 Index also plunged 17.24% and 15.89%, respectively.

The market views Chairman Chey’s US investment plans as potentially having a positive impact beyond SK Hynix, extending to South Korean semiconductor equipment stocks. Increased investment in AI data centers drives demand for High Bandwidth Memory (HBM) and server DRAM, which in turn leads to expanded memory production lines and new equipment orders. If SK Hynix expands its production capacity, order opportunities across South Korea’s semiconductor supply chain are expected to grow.

Brokerages are identifying beneficiaries centered on front-end and back-end process equipment stocks. Front-end equipment makers are expected to be the first to benefit from expanded memory production lines. PSK (319660) supplies dry strip equipment that removes residual photoresist from wafers after the semiconductor etching process. Wonik IPS (240810) and Jusung Engineering (036930) specialize in deposition equipment essential for DRAM production, while TES (095610) and Eugene Technology (084370) are also linked to SK Hynix’s memory production line investments through their deposition and etching process equipment. Analysts note that as memory expansion and migration to advanced fine processes accelerate, demand for new equipment orders as well as modifications and parts replacement for existing equipment could increase simultaneously.

The expansion of HBM production is also expected to create new order opportunities for back-end process and test equipment companies. Since HBM involves vertically stacking and connecting multiple DRAM chips, the stacking, packaging, and inspection processes are more critical than for standard memory. Hanmi Semiconductor (042700) supplies thermal compression (TC) bonders used in HBM stacking, while Techwing (089030) is expanding its business into HBM inspection equipment based on its memory test handlers. ISC (095340) supplies test sockets that verify the performance and detect defects in completed semiconductors. PSK Holdings (031980) is also classified as a beneficiary of expanded HBM back-end process investment through its packaging process equipment.

Hanwha Vision (489790) is mentioned among AI data center-related stocks. Given Chairman Chey’s identification of AI data centers as a core investment target, expectations for increased demand for physical security and video surveillance driven by expanded data center construction are being reflected.

Meanwhile, the recent performance of the “SOL Semiconductor Front-End Process ETF,” which invests exclusively in South Korea’s front-end value chain, is noteworthy. This Shinhan Asset Management product has delivered a return of 154.32% over the past year and 88.70% year-to-date. Choi Seung-woo, Head of the ETF Management Division, stated, “The battle in the AI semiconductor era ultimately depends on how much finer and more sophisticated semiconductors can be manufactured. Concentrated investment in the front-end process companies at the very forefront is the core of this ETF.”

Choi explained, “While many AI semiconductor ETFs have high weightings in back-end process-related stocks such as HBM packaging or substrates, the SOL Semiconductor Front-End Process ETF holds only front-end companies in deposition, etching, and materials, allowing it to more purely reflect the benefits of improving industry conditions.” He added, “Although short-term adjustments are occurring recently due to oversupply concerns, the direction of the industry and corporate earnings remain solid. The biggest differentiator in this cycle is that demand is spreading beyond HBM to the broader memory market, including general-purpose DRAM and NAND.”

However, analysts note that actual benefits may vary depending on when SK Group’s investment plans materialize and SK Hynix’s production capacity expansion gains momentum. Kim Young-jin, a researcher at FinLit Research Center, advised, “When selecting promising domestic semiconductor stocks, the key criteria should be the AI memory boom, migration to ultra-fine processes, and expansion of advanced packaging. It is necessary to examine not only memory companies but also beneficiary firms across the entire supply chain, including materials, front-end equipment, and back-end process and inspection.”

Choi also noted, “Large-scale investments such as Samsung Electronics’ Pyeongtaek P4 and Taylor, Texas plant, and SK Hynix’s M15X and Yongin Cluster are now beginning in earnest, with front-end equipment orders just starting.” He forecast, “In particular, new equipment orders for M15X are expected to be concentrated from the second half of the year, meaning the order cycle for domestic front-end process companies will also gain momentum.” However, he also cautioned that “while additional investment expansion by Samsung Electronics and SK Hynix is the biggest positive catalyst, conversely, investment delays or reductions could lead to earnings being pushed back.”