Key Takeaways
- Singapore’s sovereign wealth fund Temasek is reportedly preparing direct investments in Samsung and SK Hynix
- Shares of both Korean semiconductor manufacturers surged more than 7%, driving the KOSPI index up over 4%
- The potential investment represents Temasek’s inaugural foray into South Korean equities
- Temasek believes memory chip valuations remain attractive within the AI infrastructure ecosystem
- Regional semiconductor stocks received additional support from positive earnings reports from CoreWeave and Super Micro
Shares of Samsung Electronics and SK Hynix experienced substantial gains on Wednesday following a Korean media report indicating that Temasek, Singapore’s state-backed investment fund, is preparing to take positions in both semiconductor manufacturers.
According to Asia Business Daily, Temasek has approached South Korean government officials to discuss the investment timeline. The fund has reportedly opted to deploy capital directly through its in-house investment team instead of utilizing external asset management firms.
Stock Prices Climb More Than 7%
Both Samsung and SK Hynix recorded gains exceeding 7% during Korean trading sessions. The benchmark KOSPI index advanced more than 4% for the day.
The two companies have delivered exceptional performance throughout 2026, each maintaining year-to-date gains above 100%. This impressive run has been fueled by robust demand for memory semiconductors utilized in artificial intelligence applications.
Wednesday’s advance follows a challenging period for both stocks. During July, the chipmakers experienced significant sell-offs as market participants questioned the sustainability of AI infrastructure investment growth. This skepticism prompted numerous investors to exit leveraged positions.
In recent weeks, both stocks have shown signs of recovery. This rebound has been partially attributed to market expectations that the companies will enhance shareholder value initiatives to bolster their share prices.
Fund Views Memory Sector as Underpriced
With a net portfolio valued at approximately S$518 billion (roughly $404.5 billion), Temasek ranks among the world’s largest sovereign wealth funds.
According to reports, the fund has concluded that memory chip manufacturers are trading below their intrinsic value when considered within the broader AI supply chain framework. The planned investment would mark Temasek’s first direct equity stake in South Korean companies.
Temasek has not issued official statements in response to media inquiries from Bloomberg and other news organizations.
The investment news provided additional fuel to a broader rally across Asian semiconductor equities. Japanese companies including Advantest, Kioxia Holdings, and Murata Manufacturing posted gains ranging from 0.8% to 3.5%.
China’s Semiconductor Manufacturing International climbed 4%, while TSMC advanced 0.8% in Taipei trading.
The regional gains received further support from encouraging earnings announcements from U.S. companies. CoreWeave and Super Micro both delivered strong financial results, bolstering investor confidence in sustained AI-driven chip demand.
The semiconductor sector faced headwinds throughout much of June as market participants expressed concerns about excessive valuations. However, the early August recovery has shifted investor sentiment.
Kioxia’s earnings report was interpreted favorably by the market. CoreWeave’s results similarly helped alleviate worries about a potential deceleration in AI spending.
For Samsung and SK Hynix specifically, the Temasek development has provided investors with renewed conviction. A direct equity stake from a major sovereign wealth fund would signal strong institutional confidence in both companies’ long-term prospects.
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