By Sangmi Cha

(Bloomberg) -- South Korean chipmakers extended gains following a local media report that Singapore's Temasek Holdings Pte plans to invest in their stocks.

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Shares of Samsung Electronics Co. and SK Hynix Inc. rallied more than 8%, after Asia Business Daily reported that the state fund is considering the timing of the investments and plans to invest directly through its internal investment team. The Kospi gained about 5%.

The chipmakers saw a brutal selloff in July as doubts grew over the pace of rapid AI infrastructure buildout, leading to an unwinding of leveraged positions. The shares have been rebounding recently, as focus shifted to shareholder return policies that the companies are planning.

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Read: Peak Memory Fears Put Focus on Samsung, SK Hynix Cash Returns

Temasek didn't immediately comment on the report when contacted by Bloomberg.

--With assistance from David Ramli.

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