Kosdaq Pivots to Semiconductor Hardware as AI Demand Surges

South Korea’s Kosdaq exchange is undergoing a rapid structural shift, moving its center of gravity from biotechnology to semiconductor hardware. Chip materials, components, and equipment manufacturers are climbing the market-cap rankings as investors bet on a prolonged investment cycle in advanced memory. The Korea Exchange data shows this transition is already reshaping the top tier of the secondary market, with hardware firms displacing traditional sectors in valuation rankings.

The momentum is driven by a surge in demand for high-bandwidth memory (HBM) and the associated manufacturing equipment. Semiconductor exports reached a record $46.7 billion in August, a 209 percent year-over-year increase, validating the commercial viability of the sector. Market participants, including those tracking GN auto stocks/technology: chip stocks, are now assessing the durability of capital expenditures rather than relying solely on spot price fluctuations in memory chips.

Equipment makers lead market-cap surge

Jusung Engineering Co. has emerged as a primary beneficiary of this shift, with shares rising 636.46 percent since January 2. This gain elevated its market capitalization to 9.48 trillion won ($6.9 billion), placing it fourth on the Kosdaq. The company is now only 565 billion won behind third-ranked EcoPro BM, a position it likely did not hold at the start of the year.

The rally extends to other specialized equipment suppliers. SIMMTECH Co. shares gained 159.8 percent, while EO Technics Co. and Wonik IPS rose 70 percent and 73.8 percent, respectively. These gains reflect investor confidence in the supply chain for atomic layer deposition (ALD) systems and other deposition tools required for advanced DRAM processes.

Record exports signal strong demand

The underlying driver is a massive expansion in production capacity by major memory producers. SK hynix Inc. approved 54 trillion won in combined investment for its Y2 fab in Yongin and M17 fab in Cheongju. Simultaneously, Samsung Electronics Co. plans to expand supplies of HBM4 and server DRAM in the second half of the year. These capital projects create direct demand for the equipment and materials supplied by the Kosdaq-listed firms.

AI chip firms eye listings

Rebellions Inc., a developer of neural processing units for AI inference, is reportedly considering a Kosdaq listing. The company completed a 640 billion won pre-IPO round in March at a valuation of 3.4 trillion won, which included a direct 250 billion won investment from the National Growth Fund. Rebellions has also secured a contract to supply over 100 units of its RebelRack system to a Tokyo data center.

If Rebellions lists, it could utilize a technology-evaluation exemption for companies with an expected market cap of at least 1 trillion won. Generative AI firm Upstage Co. is also preparing for a listing, which would place major AI software and hardware entities on the exchange. However, Rebellions has stated that the listing venue, timing, and specific structure remain undecided, leaving the exact market impact uncertain.