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AI-Driven Memory Chip Demand Reshapes Global Semiconductor Supply and Spurs Chinese Expansion
Nov. 20, 2025 | Technology & InnovationRecent 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 & InnovationKorean 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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Tariff deal with U.S. 'significantly' reduces economic uncertainty: BOK chief
Joongang Ilbo | English | News | Nov. 20, 2025 | UndeterminedTrade Issues and Numbers
The Bank of Korea (BOK) Governor Rhee Chang-yong stated that the recent tariff deal between South Korea and the United States has significantly reduced economic uncertainty. The agreement, finalized after months of negotiations, includes Korea’s commitment to invest $350 billion in the U.S. in exchange for a reduction of U.S. tariffs from 25 percent to 15 percent. This deal is seen as positive for fostering joint ventures that combine U.S. strengths in basic science with Korea's manufacturing and applied technology expertise.
Despite solid export performance in the first half of 2025, Rhee warned that a greater tariff impact on Korean exports is anticipated in the second half of the year. He noted that Korea’s preparations for changes in global supply chains began before the trade tensions escalated, driven largely by China's growing competitiveness in certain industries. Korean companies have been diversifying markets and adjusting business operations accordingly.
Rhee expressed confidence in Korea’s strong position in emerging technologies, especially artificial intelligence (AI), highlighting strengths across both software and hardware sectors. He dismissed concerns of an AI bubble, suggesting that AI will drive demand for smaller, everyday products and sustain demand for legacy chips. Rhee emphasized that the AI boom will continue regardless of which countries emerge as leaders in the global AI competition.
'해킹 은폐 의혹' 휘말린 KT, 경찰 압수수색 돌입
KT embroiled in hacking cover-up allegations, police launch search and seizure operation
ET News | Local Language | News | Nov. 20, 2025 | Cyber Attacks and Data Loss
The Gyeonggi Nambu Provincial Police Agency’s Anti-Corruption and Economic Crime Investigation Unit conducted search-and-seizure operations on November 19, 2025, at KT’s Pangyo and Bangbae buildings. These offices house KT’s IT division and its IT services subsidiary, KT DS. About 20 investigators are examining offices to determine if KT intentionally disposed of servers to conceal evidence related to a hacking incident.
Suspicions arose after the U.S. security outlet Prack reported in August that KT server certificates may have been leaked. KT initially claimed that discarded servers were outdated equipment related to a remote consultation system and had been removed during a cloud transition. However, backup logs indicating otherwise surfaced. A joint investigation team from the Ministry of Science and ICT accused KT of obstructing the government investigation by discarding servers showing certificate leakage and hiding backup logs, prompting a request for a formal investigation.
Police reportedly filed charges against KT’s Chief Information Security Officer, Hwang Tae-seon, for obstruction of official duties by deception. Hwang is under scrutiny and may be a target in the ongoing searches, which could also expand to KT’s Gwanghwamun West building due to recent IT team relocations. KT has stated it is currently assessing the situation.
Lee set to attend biz forum in UAE to discuss bilateral economic ties
Yonhap | English | News | Nov. 20, 2025 | UndeterminedBizdev-Partnering
President Lee Jae Myung is scheduled to meet with business leaders from South Korea and the United Arab Emirates (UAE) on November 20, 2025, in Abu Dhabi to discuss bilateral economic cooperation across technology, defense, energy, and other sectors. This follows his summit with UAE President Mohamed bin Zayed Al Nahyan on November 18, during which the two countries signed seven memorandums of understanding focused on strategic collaboration in artificial intelligence (AI), the defense industry, energy, and additional areas.
Key South Korean business figures expected to attend the roundtable include Samsung Electronics Chairman Lee Jae-yong, Hyundai Motor Group Executive Chair Euisun Chung, Hanwha Group Vice Chairman Kim Dong-kwan, and LG Electronics CEO Cho Joo-wan. The discussions aim to deepen cooperation in cutting-edge technology, infrastructure, the cultural sector, and beyond.
After the business forum, President Lee will meet with service members of the Akh unit, a South Korean contingent stationed in the UAE. Following his three-day visit to the UAE, Lee will continue his Middle East and Africa tour with summit talks in Cairo with Egyptian President Abdel Fattah al-Sisi. His itinerary also includes stops in South Africa for the Group of 20 summit and Turkey.
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