[News Today] How long will chip-led boom last?

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The KOSPI has continued to set new records, now climbing past the 7,800 mark. Behind the rally is a super boom in memory semiconductors.

Demand for chips is expected to stay strong for now, with earnings also likely to keep rising.

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Korea's exports are benefiting from the semiconductor boom.

Exports in the first quarter recorded an all-time high of USD 219.9 billion.

If the trend continues, Korea could even surpass Japan this year.

Chips accounted for more than a third of overall exports.

As memory chip prices rose on the global AI investment boom, exports of DRAM chips surged 3.5 times compared to the first quarter of last year, while NAND flash exports are up 4.7 times.

Share prices of the world's top-three memory chipmakers have all more than doubled in less than half a year compared to the start of the year.

So, how long will this boom last?

Industry insiders say that it will last at least through the end of this year, and will likely continue next year.

Although big tech companies like Google are developing AI technologies that require less memory capacity, both domestic and international experts believe it will be difficult to cut memory demand.

John Neuffer / CEO, Semiconductor Industry Association

So, the bottom line is the pie is growing, so each piece of the pie will be bigger, and I think with the new players in the field we'll just be just fine.

Demand is high, but it is hard to increase production immediately. Samsung Electronics and SK hynix are both speeding up facility expansion, but mass production is not expected until the second half of next year at the earliest.