South Korea

Intelligence for Better Decision Making

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


News
Media
312

Government
Releases
21

City/State
Releases
31

Embassy
Releases
0
Foreign
Service
Advisories
0
Academic/
Think
Tank
2


Podcasts
0


Videos
0

Social
Media
0

Business
Releases
0

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

The goal is to provide intelligence that allows decision makers to avoid being blindsided by what they may have missed, while informing them to make better decisions as well.

Risk Categories Reported on Today

Risk Category
Items Reported On
Accidents
28
Crime
3
IP Protection
4
Strikes and Work Stoppages
3
North Korea
11
Corporate Corruption or Fraud
2
Privacy
1
Regulation
15
Critical Infrastructure Failure
3
Cyber Attacks and Data Loss
1
Shifting Geopolitical Alliances
2
Protest, Demonstration, Dissent
2
Political Scandal or Corruption
2
Epidemics and Pandemics
3
Supply Chain Issues
1
Regulatory Enforcement Actions
2
Extreme Weather Events
1

Erudite Risk also includes operations categories so you can monitor the environment for better decision making. Everything is tied together--what happens in risk affects operations and what happens in the market impacts risk profiles.

We categorize key intelligence into one of 30 different operations intelligence categories.

Different roles and functions within the organization can monitor different key issue areas. HR may monitor employment, wages, regulations, labor and management relations, etc., while P&L leaders may monitor overall developing trends.

Operations Categories Reported on Today

Operations Category
Items Reported On
Tech Development/Adoption
29
Asset Price Change
8
Bizdev-Partnering
14
Economic Growth
2
Mergers & Acquisitions
6
Operating Results
5
Inflation
2
Demographics
3
Employment
4
Real Estate
3
Initiative
1
Legal Exposure
2
Wages and Compensation
1
Politics and Elections
1
Financial System Problems
1

“적자 기업인데 가격 더 내리라네요”...정부 눈치에 몸살 앓는 이 업계

This industry suffering from government pressure to lower prices despite being in the red

Maekyung | Local Language | News | Nov. 21, 2025 | Regulation

Domestic non-life insurers are facing increasing pressure from the government to lower automobile insurance premiums despite significant financial losses in the sector. Auto insurance holds a relatively high weighting in the consumer price index, prompting the government to push insurers to reduce premiums as a means of stabilizing overall prices. This repeated demand for "win-win financing" and social contributions conflicts with market logic, especially as insurers move from profitable years to a loss of 9.7 billion won last year.

While the government officially states it does not intervene in premium adjustments, insurers remain cautious and often revise rate plans based on government signals. Financial authorities have even contacted major insurers regarding plans to lower premiums next year. Industry insiders express frustration, arguing that the government's approach limits market autonomy and may pose fiduciary risks for listed insurance companies if losses increase without proper action.

The government's demands also extend beyond auto insurance, including newly introduced support measures tied to low birth rates. These measures require insurers to offer discounts on children's insurance premiums and allow premium payment deferrals, creating additional financial burdens. Moreover, a government initiative plans to fund free insurance products for small business owners through insurer contributions, while a proposed tax reform would raise education taxes on financial firms, potentially increasing financial liabilities and adversely impacting insurers' solvency ratios.

The combined effect of these pressures and new fiscal burdens is expected to cost the top non-life and life insurers approximately 350 billion won, further straining their financial soundness and complicating the industry's ability to adjust premiums based on market conditions.

Trump's chip tariff plan likely postponed: Report

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

U.S. President Donald Trump's administration is reportedly delaying the planned imposition of semiconductor tariffs, according to multiple unnamed officials. The postponement is driven by concerns that additional tariffs could escalate trade tensions with China and raise consumer prices. Although aides have indicated a slower approach to avoid worsening trade friction, White House and Commerce Department officials have denied any official change in stance on the chip tariffs.

Trump had announced on August 6, 2025, intentions to impose a roughly 100 percent tariff on semiconductors and signaled the tariffs would be announced imminently in mid-August. However, no formal announcement has yet been made. The U.S. recently agreed in a joint fact sheet with South Korea to offer semiconductor tariff rates that are no less favorable than those given to other major trading partners.

The chip tariff plan relies on Section 232 of the Trade Expansion Act of 1962, which allows the president to adjust imports when they are deemed a national security threat. Korean technology companies such as Samsung Electronics and SK hynix remain closely monitoring the situation.

데이터센터 화재가 남긴 교훈…"AI 시대, 더 단단한 회복력 필요"

Lessons Learned from Data Center Fires: In the AI Era, Stronger Resilience Is Needed

Digital Daily | Local Language | News | Nov. 21, 2025 | Critical Infrastructure Failure

Kevin Wollenweber, Cisco Senior Vice President of Data Center and Internet Infrastructure, highlighted the need for stronger resilience in data centers following a recent fire at South Korea's National Information Resources Service that disrupted over 700 systems and took two months to recover. He stressed that as governments and companies increasingly build AI data centers, it is essential to establish an ecosystem focused on increasing reliability and distributing risk.

Wollenweber emphasized that AI requires substantial physical infrastructure, predicting it will become a significant part of data center operations. He reinforced that traditional resilience practices, such as redundancy, distributed operations, and disaster recovery systems, must be enhanced to protect against physical failures like fires, floods, and blackouts. He advocated for building systems capable of continuing operation even if half of a facility is affected and recommended distributing data centers across multiple regions and cities.

Given challenges like population density in Korea, Wollenweber noted that large-scale resilient data centers can be difficult to establish and that even global hyperscalers struggle with risk balancing. He introduced the concept of NeoCloud—businesses that rent AI infrastructure centered around GPUs—and noted that partnerships with companies such as Oracle and NeoCloud are becoming common. This approach could allow capacity transfer from domestic data centers to these providers to improve resilience.

To improve data center reliability in the AI era, Wollenweber proposed a "Scale-Across" strategy, which involves connecting multiple data centers and sites to form large-scale clusters that operate cohesively despite geographic separation. While latency remains a challenge when connecting distant GPUs, next-generation orchestration innovations are emerging to manage workloads effectively by placing latency-insensitive elements outside the main fabric.

Wollenweber also pointed out the industry's undervaluation of network data, advocating for the use of integrated data fabrics like Cisco Data Fabric based on the Splunk platform. This solution consolidates data across systems and clouds, enabling real-time use for AI and intelligence without incurring prohibitive costs. He highlighted the necessity of data and network integration for AI functionality.

Looking ahead, Wollenweber predicted an increase in AI data center technological innovations, driven by hyperscalers, NeoCloud providers, and countries beginning to adopt AI technologies. He sees the AI era as a catalyst for new strategies to enhance data center resilience globally.

Try the Daily Briefing for your country of choice for two weeks--free of charge and with no obligation.

Have a service or subscription question? We'd be happy to hear from you.

How can we help?
Full Name:
Email Address:
Type of Inquiry:
Country of Interest:

Contact us for a free trial of the Daily Briefing for your country of choice.


We currently cover:
South Korea
Japan
China
Taiwan
Vietnam
India

info@eruditerisk.com

The Daily Briefing is delivered Monday through Thursday via email.

Each day's reports include a combination of:

Takes
Takes are our deep dives into a topic of enduring interest or concern. Takes include copious references to all the media resources we gathered to build them.

Developments
Developments are key issues and incidents being heavily reported on in country. These are the centers of local thought gravity around which everything else revolves.

Risk Media
Summaries and analysis of the most important risk issues reported on in media, arranged by risk category. Learn about risk trends and issues while they are developing--before they blow up.

Ops Media
Summaries and analysis of the most important operational issues reported on in media, arranged by operations category. See what's changing in your market, and what's not.

Government Releases
Government press and data releases on key economic data, regulation, law, intiatives, incidents. Straight from the government's press to your eyes in less than a day.

Embassy and Business Association Releases
Statements and news releases from foreign embassies and business/industry associations, including chambers of commerce.

The Daily Briefing is comprehensive!

The Daily Briefing can run 50-100 pages each day!

Luckily, Erudite Risk tailors every report specifically to you.

Content Filtering
We try hard to ensure that every piece of information included in each day's reports will be of interest to our readers.

To fulfill our goal of comprehensively monitoring the intelligence landscape and also keeping reports readable, we build big reports--then deliver only the information that applies to you.

Each Daily Briefing is a bespoke report matched to your concerns. Tell us what you want in it, or we can match it to your professional needs. It's that easy.