Memory prices surge on AI demand 2-fold, benefiting South Korea and Taiwan
As memory semiconductors become increasingly important amid growing AI demand, prices have risen by more than 2-fold this year, while cutting-edge production is limited to SK hynix, Samsung Electronics, and Micron facilities in Taiwan. Chinese companies remain excluded from cutting-edge production lines.
Memory semiconductors have re-emerged as a key product amid a surge in AI demand. Market attention is focused on them because they directly affect investment and supply dynamics.
Since the beginning of this year, memory demand has far exceeded supply, sending prices up by more than 2-fold. Supply shortages and rising prices are affecting profitability across the industry.
Cutting-edge memory production is limited to South Korea's SK hynix and Samsung Electronics, as well as U.S. company Micron, which has production facilities in Taiwan. Apart from these companies, no others are understood to be capable of producing cutting-edge products.
Chinese companies are virtually absent from the cutting-edge memory market. Unlike during the smartphone boom in the past, their participation in the most advanced processes remains limited.
About 20years ago, China emerged as a manufacturing powerhouse on the back of smartphones. The impact of having subsequently been excluded from some equipment and materials supply chains due to tariffs and export controls, among other factors, remains.
Industry sources report that related employees are benefiting from the boom, receiving performance bonuses thanks to soaring prices. There is an assessment that new value is accumulating in South Korea and Taiwan.
Sources: 뉴시스 경제
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