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AI-Driven Memory Chip Demand Reshapes Global Semiconductor Supply and Spurs Chinese Expansion
Nov. 20, 2025 | Technology & Innovation

Recent shifts in semiconductor investment reflect the impact of AI-driven demand and strategic capacity expansions worldwide.

**AI-driven demand for high-bandwidth memory (HBM) chips led Samsung and SK Hynix to reallocate production capacity from mainstream DRAM toward HBM, creating significant shortages in DRAM for mobile phones, PCs, and servers.**
As these manufacturers ramp up HBM output to support accelerating AI applications, DRAM supply constraints have emerged, pushing memory spot prices sharply higher and contributing to an industry phenomenon known as “chipflation.”

**Rising memory costs are driving up end-product prices across the tech sector.**
PC prices could climb by as much as 15% next year, while smartphone component expenditures are projected to increase by 5–7%. TrendForce analysts warn that these elevated costs may dampen consumer demand, potentially cutting smartphone production by 2% and laptop manufacturing by 2.4% in 2026. According to their estimates, low-margin, low-cost smartphones face the greatest risk.

**Major PC vendors already feel the impact.**
Dell’s memory procurement completion rate may fall to around 40%, raising the risk of delivery delays. In response, Morgan Stanley downgraded Dell’s stock outlook, and both Dell and HP suffered steep share price declines once they disclosed memory shortages and impending price hikes.

**Chinese smartphone manufacturers are encountering acute DRAM shortages and scrambling to secure supplies amid intense competition.**
In contrast, large technology companies such as Apple have largely insulated themselves by relying on long-term memory supply contracts. The scramble among Chinese OEMs has led to reduced orders for local foundries like SMIC.

**Domestic Chinese memory chipmakers are seizing these shortages to expand aggressively.**
Yangtze Memory Technologies Co. (YMTC) has launched government-supported investments to boost its NAND flash capacity, targeting the world’s fourth-largest producer position within two years. This push aligns with Beijing’s strategy of nurturing domestic semiconductor champions. Unlike Samsung and SK Hynix, which have signaled only modest capacity increases for DRAM and NAND, Chinese firms are pursuing more ambitious growth plans. As global memory demand continues to rise, these producers may capture additional market share. Samsung’s Xi’an NAND flash facility and SK Hynix’s Wuxi DRAM plant in China already supply substantial portions of their companies’ global output, and ongoing government subsidies and investments in domestic fabs should further strengthen China’s role in the global memory supply chain.
Samsung Accelerates 1c DRAM Production Expansion Amid Rising Global Demand
Nov. 20, 2025 | Technology & Innovation

Korean chip makers are significantly expanding their DRAM production capabilities to address growing market demand.

**Samsung Electronics will ramp up its 10-nanometer-class 6th-generation DRAM (1c DRAM) output from 60,000 wafers per month at the end of 2025 to roughly 200,000 wafers per month by the end of 2026.**
The company plans to add 80,000 wafers by mid-2026 and another 60,000 wafers in the final quarter through process conversions in existing lines and fresh investments at its Pyeongtaek Plant 4 (P4).

**This enlarged 1c DRAM capacity will account for about one-third of Samsung’s current total DRAM production, which stands at 650,000–700,000 wafers per month.**
Samsung’s commitment reflects confidence in 1c DRAM technology and aims to alleviate a tight supply not only in high-bandwidth memory (HBM) but in mainstream DRAM—where buyers have begun pre-purchasing unproduced stock to secure future supply.

**Samsung’s 1c DRAM devices will feature circuit linewidths of 11 nanometers or less and incorporate multiple layers of extreme ultraviolet (EUV) lithography.**
The goal is to mass-produce next-generation DRAM that delivers both higher performance and lower cost.

**On November 16, Samsung unveiled a broader investment plan of 450 trillion won over five years to secure memory semiconductor capacity as artificial intelligence drives demand higher.**
The company intends to scale production proactively, enabling rapid responses to market shifts.

**This investment push also targets the restoration of Samsung’s position as the world’s top DRAM supplier, a title currently held by SK hynix following Samsung’s recent HBM supply and sales setbacks.**
Samsung representatives say they are reviewing various measures to meet surging demand but have not confirmed the precise allocation of additional funds.

Monitored Intelligence for South Korea - Nov. 21, 2025


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Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.

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Gov't panel to release interim probe results on Jeju Air crash next month

Yonhap | English | News | Nov. 21, 2025 | Accidents

A government panel investigating the Jeju Air crash that occurred on December 29, 2024, at Muan International Airport plans to hold a public hearing on December 4 and 5, 2025, to announce interim results of its probe. The Aviation and Railway Accident Investigation Board (ARAIB), under the transport ministry, is conducting the investigation following the fatal accident that resulted in the deaths of 179 passengers and crew. The hearing aims to verify facts and conduct technical assessments related to the crash, including sessions on bird strikes, localizer facilities, aircraft fuselage, and aviation.

However, the bereaved families of the victims have vowed to boycott and block the hearing, criticizing the ARAIB for lacking neutrality and independence due to its affiliation with the transport ministry. They argue that the ministry has a conflict of interest and should bear responsibility for the accident. The families demand the suspension of the investigation until the ARAIB's jurisdiction is transferred to the prime minister’s office, expressing distrust in the ongoing investigation process.

What Pyongyang’s response to US-SK security agreements signals

Hankyoreh - E | English | News | Nov. 21, 2025 | North Korea

North Korea has strongly condemned the recent security agreements between the US and South Korea, criticizing the explicit mention of denuclearization of North Korea as evidence of a hostile and confrontational policy by Washington and Seoul. The state-run Korean Central News Agency (KCNA) accused the US-ROK alliance of increasing regional instability and declared that North Korea would adopt “more justified and realistic countermeasures.”

Pyongyang objected to the use of the phrase “complete denuclearization of the Democratic People’s Republic of Korea,” interpreting it as a denial of North Korea’s sovereignty. They also rejected references to the 2018 US-North Korea summit agreement, which North Korea claims was nullified by the US. Furthermore, North Korea condemned South Korea's approval to build nuclear-powered submarines, warning it would destabilize military security in the Asia-Pacific, encourage nuclear proliferation, and trigger an arms race.

In response, South Korea’s presidential office reaffirmed its stance of having no hostile intentions and expressed commitment to restoring mutual trust and easing inter-Korean tensions. Analysts noted that North Korea’s reaction, delivered through a state media commentary rather than high-level official statements, indicated a calibrated and cautious response. Experts suggest North Korea remains open to talks but insists that US policy on denuclearization must be revised before dialogue can resume.

SK지오센트릭, 에탄 본격 도입…NCC 경쟁력 강화

SK Geocentric fully introduces ethane… Strengthening NCC competitiveness

ZD Net Korea | Local Language | News | Nov. 21, 2025 | UndeterminedTech Development/Adoption

SK Geocentric is shifting away from a naphtha-centered feedstock structure by fully introducing ethane to enhance the competitiveness of its naphtha cracking plant (NCC). The company signed a strategic memorandum of understanding (MOU) with SK Gas to secure a stable ethane supply chain, improve feedstock economics, and advance the petrochemical industry's structure. The two firms plan to finalize the timing and volumes of ethane supply based on this agreement.

SK Geocentric aims to diversify its feedstock structure and improve process efficiency through ethane introduction, while SK Gas will manage procurement, transportation, price negotiations, and infrastructure development for stable ethane supply, especially in the North American region. Together, they plan an integrated supply chain system from import to consumption, ensuring price competitiveness and supply stability for feedstock.

Ethane offers lower price volatility and higher ethylene production efficiency compared to naphtha and is widely used by major petrochemical companies globally, driven by the expansion of North American shale gas production. Despite maritime transportation and terminal costs, ethane remains cost-competitive due to stable shale gas-based supply. SK Gas is developing ethane storage and handling terminals based on its LPG/LNG infrastructure to supply feedstock reliably to Ulsan petrochemical complex companies, including SK Geocentric.

SK Geocentric’s president Choi An-seop highlighted that the ethane collaboration with SK Gas will enhance NCC competitiveness and stabilize operations amid structural downturns in the petrochemical industry. SK Gas president Yoon Byung-seok emphasized ethane’s potential beyond feedstock, including as a next-generation energy source for hydrogen production and power generation, aiming to accelerate feedstock diversification and industry structural improvements in Korea.

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