Samsung Electronics and SK Hynix are embarking on one of the world's largest semiconductor investment drives, committing trillions of won to expand memory chip production as they seek to capitalise on surging artificial intelligence (AI) demand. However, industry experts caution that the aggressive capacity expansion could expose the sector to oversupply risks if AI-related spending slows in the coming years, as per a report by Reuters.
The investment plans received strong backing from South Korean President Lee Jae Myung, who praised the country's leading chipmakers for supporting the government's ambition to strengthen South Korea's position in the global semiconductor industry. According to Reuters, the government aims to double the nation's memory chip production capacity over the next five years by accelerating approvals and construction timelines for new fabrication plants.
