Samsung and SK Hynix Perpetuals Tumble as S. Korean Giants Unveil $518B AI Push
Highlights
- Samsung and SK Hynix unveiled $518 billion AI and semiconductor chip project in South Korea.
- South Korean president plans to boost semiconductor leadership and expand its artificial intelligence infrastructure.
- SKHYNIX-USDC and SAMSUNG-USDC perpetuals tumbled on Hyperliquid and Binance.
South Korean giants Samsung and SK Hynix announced a landmark 800 trillion won ($518 billion) AI and semiconductor chip project on Monday. However, perpetuals related to Samsung and SK Hynix tumbled as the traders see AI investment as a major headwind for the crypto market.
Samsung and SK Hynix Commit $518 Billion Investments to AI Chip Expansion
Samsung Electronics and SK Hynix will each construct two new semiconductor chip plants as part of the government-backed AI plan, Bloomberg reported on June 29. The companies will focus on building chip manufacturing, AI data centers, advanced packaging, batteries, and displays.
The investments respond to explosive AI demand for high-bandwidth memory (HBM) and other advanced chips. Both companies have posted record profits recently, driven by supply constraints and orders from major tech firms building AI infrastructure.
South Korean President Lee Jae Myung announced plans to strengthen the country’s semiconductor leadership and expand its artificial intelligence infrastructure.
Industry experts say diversifying chip investment beyond Seoul could ease infrastructure bottlenecks. However, they warn that building cutting-edge fabs requires vast electricity and water, advanced logistics, deep supplier networks and highly skilled labor.
As CoinGape reported earlier, Samsung and SK Hynix trailed Bitcoin despite AI growth. However, the companies have now surpassed Bitcoin in terms of top assets by market cap.
Perpetuals and Shares Slide on “Sell the News” Reaction
Despite the bullish long-term outlook, shares of Samsung Electronics and SK Hynix declined on Monday amid profit-taking and concerns over heavy capital spending. Samsung stock fell 4.76% and SK Hynix closed 1.68% lower amid recent weakness in KOSPI index.
Meanwhile, SK Hynix has confirmed its American Depositary Receipt (ADR) issuance program under the ticker SKHY US. It is scheduled to list and begin trading on Nasdaq on July 10,
Leveraged perpetuals tied to the stocks also tumbled sharply on Binance and Hyperliquid, increasing fall in line with their stock movements. SKHYNIX-USDC is down 5% at 1704 and SAMSUNG-USDC dropped more than 6% to 211.50.
Moreover, this comes as traders consider further selling pressure and reduced liquidity in the crypto market amid capital flow to AI. Analysts have viewed capital rotation from crypto to the AI industry as bearish for Bitcoin and the broader crypto market, but Cathie Wood says AI can’t replace Bitcoin.
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