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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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6G·AI 경쟁력, 미드밴드가 가를까…美 주파수 추가할당 착수 [IT클로즈업]

6G·AI Competitiveness, Will Mid-Band Decide… US Begins Additional Frequency Allocation [IT Close-up]

Digital Daily | Local Language | News | Nov. 21, 2025 | UndeterminedTech Development/Adoption

The United States has initiated a major reorganization of its spectrum policy to support the commercialization of 6G by 2030, focusing on securing mid-band frequencies, particularly the upper C-band (3.98–4.2 GHz). The Federal Communications Commission (FCC) has issued a Notice of Proposed Rulemaking to allocate between 100 MHz and 180 MHz of this band for mobile use by July 2027, transitioning it from fixed satellite and broadcasting services. This move aims to create contiguous mid-band spectrum critical for wideband 6G networks, addressing growing AI-driven uplink traffic demands and building on previous reallocations of the lower C-band.

In parallel, South Korea is also reorganizing its spectrum to prepare for 6G, with potential additional allocations in the 3.7–4.0 GHz band, currently designated as a "clean zone" for fixed satellite. A public hearing on 3G·LTE reassignment at the end of November 2025 is expected to reveal whether this band will be repurposed for mobile use. However, Korea faces different market conditions from the U.S., including stagnant 5G traffic growth and delays in transitioning to 5G standalone mode, which may impact operator demand and auction participation. The government is weighing these factors carefully to avoid risks associated with excessive allocation fees and poor competition.

Experts and industry stakeholders in Korea emphasize the need to move beyond a time-division duplexing (TDD)-centric framework toward incorporating frequency-division duplexing (FDD) in the low-band spectrum to improve uplink quality. Combining FDD low-band with TDD mid- and high-bands via carrier aggregation (CA) is expected to enhance 5G and future 6G network stability and coverage, especially indoors. There are calls for a shift from revenue-focused policies to investment- and quality-centered strategies that encourage infrastructure advancement and address network capacity limitations effectively.

Vice FM notes need to resume talks with Japan on sea boundaries under U.N. framework

Yonhap | English | News | Nov. 21, 2025 | Shifting Geopolitical Alliances

South Korea's Second Vice Foreign Minister Kim Jina emphasized the need to resume maritime boundary talks with Japan under the United Nations Convention on the Law of the Sea (UNCLOS) framework, following the expiration of their bilateral agreement on continental shelf boundaries earlier this year. She highlighted that UNCLOS remains essential for governing South Korea's maritime relations and called for cooperation, mutual understanding, and solutions based on international law in waters where maritime entitlements overlap.

Kim's comments refer to the joint development zone (JDZ) agreement between South Korea and Japan, which expired in June 2025. Originally signed in 1974 to jointly exploit resources in the East China Sea, the agreement became less favorable for South Korea after UNCLOS criteria, effective since 1994, prioritized Japan in determining continental shelf boundaries by distance, placing much of the JDZ within Japan’s exclusive economic zone.

Maritime talks between South Korea and Japan were regular until 2010 but ceased amid broader historical disputes. While South Korea maintains similar dialogues with China, recent working-level discussions with Japan, including one in September 2024, have been limited to broad topics without concrete progress on boundary delimitation.

Gov't investigation finds widespread labor abuses against foreign workers

Joongang Ilbo | English | News | Nov. 21, 2025 | UndeterminedEmployment

A government investigation in South Korea has revealed widespread labor abuses against foreign workers, with 93 percent of inspected workplaces violating labor laws. The Ministry of Employment and Labor conducted two rounds of inspections in April and September 2025 at 196 workplaces vulnerable to worker mistreatment, uncovering 846 breaches across 182 workplaces. Common violations included unpaid wages at 123 sites, excessive working hours at 65, failure to provide breaks or holidays at 22, and assault or discriminatory treatment at 10.

Unpaid wages amounted to 1.7 billion won ($1.16 million), with 103 of the 123 workplaces repaying 1.27 billion won. Serious cases led to criminal charges, such as an assault case in South Chungcheong and wage evasion in Gangwon. Additional violations included failure to enroll foreign workers in mandatory insurance and inadequate dormitory facilities. Three workplaces hiring foreign workers without permits faced restrictions on future employment authorizations.

The ministry issued 844 corrective orders and plans to conduct further inspections, particularly targeting repeat offenders. Findings will be shared with key stakeholders to promote voluntary improvements in labor conditions. Labor Minister Kim Young-hoon emphasized that there should be no distinction between Korean and foreign workers in labor rights protection and committed to establishing an integrated support system for foreign workers.

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