Temasek, one of Asia's largest sovereign wealth funds, is making new investments in Samsung Electronics and SK Hynix, marking its first entry into the South Korean stock market. The Singapore state investor has recently decided to buy the two chipmakers and has discussed the timing of execution with the South Korean government, people familiar with the matter said. It is reportedly handling the investment internally rather than through an external asset manager. Temasek views memory semiconductors as the most undervalued segment in the AI value chain and is increasing exposure across AI-related sectors even as concerns about overheating have tempered some enthusiasm for the theme. A financial regulatory official said Temasek consulted authorities on market-entry timing after Samsung Electronics and SK Hynix showed extreme volatility following approval of single-stock leveraged ETFs. In the second quarter, Temasek concentrated investments in semiconductors, data centers, cloud services, AI model developers and software infrastructure, and it aims to raise AI-related assets to as much as 15% of its portfolio over the next five years from 6%. A 13F filing submitted to the U.S. Securities and Exchange Commission on Aug. 7 showed it held Nvidia, TSMC and ASML shares as of the end of June, while it is also a major institutional investor in generative AI developers including OpenAI and Anthropic. Temasek, wholly owned by Singapore's Ministry of Finance, managed S$518 billion in assets as of the end of March.