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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. 20, 2025


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FM Cho calls nuclear-free Korean Peninsula 'imperative' never to be abandoned

Yonhap | English | News | Nov. 20, 2025 | North Korea

Foreign Minister Cho Hyun emphasized that achieving a nuclear-free Korean Peninsula is an "imperative" that must never be abandoned. In a keynote speech delivered at the Seoul Diplomacy Forum 2025, Cho reaffirmed South Korea's commitment to preventing the peninsula from becoming a flashpoint of armed conflict and outlined the government's goal of phased denuclearization—beginning with halting North Korea's nuclear build-up, followed by reduction and eventual dismantlement.

Cho highlighted the need to strengthen South Korea’s defense capabilities against North Korean threats while simultaneously pursuing efforts to prevent unintended conflicts, reduce tensions, and restore dialogue with Pyongyang. He acknowledged the increasingly complex strategic environment caused by heightened geopolitical and geoeconomic competition, as well as growing nuclear and missile threats from North Korea.

Additionally, Cho stressed the importance of promoting peaceful coexistence beyond the Korean Peninsula and urged efforts to avoid the solidification of confrontational blocs in the region. He pledged to advance trilateral cooperation among South Korea, the United States, and Japan, as well as among South Korea, China, and Japan, in pursuit of regional stability.

Korea, China, Japan to discuss cooperation in biohealth, science in annual conference

Yonhap | English | News | Nov. 20, 2025 | UndeterminedTech Development/Adoption

The 23rd Yellow Sea Rim Economic and Technological Exchange Conference began this week in Daejeon, South Korea, focusing on trilateral cooperation between South Korea, China, and Japan in biohealth, science, and technology. The event, organized by the Ministry of Trade, Industry and Resources, gathers around 300 officials from governments, companies, and economic associations of the three countries and will run for three days through Thursday.

Participants aim to exchange views on collaboration in these key sectors as well as explore broader business partnerships to drive regional economic growth. Additionally, a business conference will be held alongside the event for companies to discuss potential business and investment opportunities within each other's markets.

Chinese, Japanese diplomats differ on vision for regional order, skirt Taiwan issue

Joongang Ilbo | English | News | Nov. 20, 2025 | Shifting Geopolitical Alliances

Chinese Ambassador Dai Bing and Japanese Ambassador Koichi Mizushima presented contrasting views on regional order at the Seoul Diplomacy Forum on November 18, 2025, avoiding direct discussion of the Taiwan issue amid heightened tensions in the Taiwan Strait. Dai criticized what he described as a residual Cold War mentality, exclusive groups, and protectionism primarily linked to unnamed countries, implicitly referring to the United States. He emphasized China’s stance against tariff, trade, and technology wars but warned China would defend its core interests if challenged. Dai urged Korea to maintain balanced relations with both China and the U.S.

In contrast, Mizushima highlighted Japan’s commitment to alliances and international norms, advocating for a multi-layered network including the Korea-U.S.-Japan alliance and the Quad. He noted revitalized shuttle diplomacy between Korea and Japan and Korea’s expanding diplomatic outreach into Central Asia and Africa. On North Korea, Dai stressed China’s historic ties and shared interest in stability, whereas Mizushima characterized North Korea as a regional threat and emphasized denuclearization and Japan’s abduction issue, with Korea’s support.

Singapore Ambassador Wong Kai Jiun provided a middle-power perspective on managing great-power rivalry, underscoring the need for closer cooperation among smaller states as the U.S. turns inward and China advances global initiatives amid domestic challenges. He praised Korea’s pragmatic diplomacy and its role in ASEAN cooperation and global transitions. Korean Foreign Minister Cho Hyun, speaking through an envoy, reaffirmed Korea’s commitment to a nuclear-free Korean Peninsula and the importance of restoring dialogue, regardless of the sequence of talks involving the U.S. and North Korea.

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