Samsung and SK Hynix perpetuals slide as Korean conglomerates channel $518B into chips, not crypto 🤖

Perpetuals tied to Samsung Electronics and SK Hynix dropped on Monday after the two South Korean conglomerates unveiled a combined 800 trillion won ($518 billion) plan to expand their AI and semiconductor operations. The sell-off in the perpetual contracts reflected traders' view that the capital commitment prioritizes artificial intelligence infrastructure over digital assets, a sector sensitive to shifts in risk capital.

Samsung Electronics and SK Hynix confirmed plans to construct two new semiconductor fabrication plants each, according to a Bloomberg report dated June 29. The investments cover chip manufacturing, AI data centers, advanced packaging, batteries and displays, and target surging demand for high-bandwidth memory (HBM) and other advanced chips. Both companies have posted record profits in recent quarters amid supply constraints and orders from major technology firms building out AI infrastructure.

South Korean President Lee Jae Myung announced the package as part of a national strategy to strengthen the country's semiconductor leadership and expand its artificial intelligence footprint. Industry analysts cited by the report said that diversifying chip investment beyond the Seoul metropolitan area could ease infrastructure bottlenecks, while warning that advanced fabs require vast electricity and water capacity, sophisticated logistics, deep supplier networks and highly trained personnel. Samsung and SK Hynix have trailed Bitcoin ($BTC) performance despite the AI-driven earnings cycle, having now surpassed the asset over the period referenced, per earlier reporting.