The Bank of Korea turns bullish, stating that the AI super cycle will continue

Gelonghui, July 13th｜The Bank of Korea released a report on Monday stating that the global semiconductor market still faces a supply shortage, and the current AI-driven supercycle is expected to continue for some time, aiming to allay investor concerns that the chip cycle has peaked. In a report submitted to Members of Parliament, the Bank of Korea said: “Although investments in AI infrastructure have significantly boosted semiconductor demand, the pace of capacity expansion has been relatively slow,” adding that there are no signs of a slowdown in the semiconductor industry cycle. The Bank of Korea pointed out that this chip cycle differs from the past, with its core driving force coming from major companies rushing to increase investments, as all sides anticipate the popularization of AI will fundamentally reshape the industry ecosystem. The Bank of Korea stated: “The current market is dominated by customized chip products such as High Bandwidth Memory (HBM), and the constraints on capacity expansion are greater than before. The growth and expansion trend in the global semiconductor market is expected to persist for quite a long time.”