CapitaMacro: South Korea’s Semiconductor Boom May Slow in Two Years

According to ME News, on August 13 (UTC+8), Marcel Thieliant, an economist at Capital Economics, stated that although South Korea’s GDP growth faces upside risks in the short term, the semiconductor-driven economic boom may lose momentum over the next two years. The economist expects the U.S. artificial intelligence investment surge to cool by 2028, which could prompt Korean chipmakers to begin cutting capital expenditures, given the highly cyclical nature of the semiconductor industry. Thieliant noted that Samsung Electronics and SK Hynix have announced a combined investment plan of 800 trillion Korean won to build new chip manufacturing facilities in southwestern Korea, though the specific investment timeline has not yet been disclosed. He pointed out that in 2023, following the reversal of the post-pandemic electronics boom, SK Hynix reduced its capital expenditures by two-thirds. (Jin10) (Source: ODAILY)