Micron and SK Hynix cross $1 trillion valuations as chip shortage fuels AI boom - MSN

Recent market capitalization milestones for Micron Technology and SK Hynix, both surpassing the $1 trillion mark, underscore the growing momentum in the semiconductor industry driven by the AI infrast... Read original →

Micron and SK Hynix crossing the $1 trillion market cap threshold reflects not speculation but the structural surge in AI-driven HBM demand. Technologically, HBM3E/HBM4 adoption is forcing rapid advancement in TSV, silicon interposers, and advanced packaging—making TSMC’s CoWoS capacity a critical chokepoint. With DRAM scaling nearing physical limits, 3D stacking is now mandatory, benefiting upstream equipment and materials suppliers. Geopolitically, while U.S. CHIPS Act subsidies ease capex burdens, tightening export controls—especially on transshipments via Taiwan, China and Hong Kong, China—inflate compliance costs and disrupt supply reliability. Samsung will likely accelerate HBM4 ramp-up and potentially trigger price wars to reclaim leadership. Over the next 18 months, the HBM shortage will worsen, but by late 2027, new fabs from all three giants risk triggering a supply glut and sharp price correction—current valuations already price in unsustainable margins.