Chipmakers in Korea are ramping up their production of memory chips in a bid to take advantage of the currently insatiable demand for these products within the AI industry. Samsung Electronics and SK Hynix embody this Korean push to benefit from the intense competition to address the growing AI market.
Samsung Electronics has massively increased its output of DRAM (dynamic random access memory) and NAND flash production lines. It has also expanded its output of high-end semiconductor products like HBM (high-bandwidth memory) devices.
In November, the firm decided to restart construction work at its Pyeongtaek complex located in Gyeonggi Province. The construction project focuses on creating a dedicated facility to produce Line 5 chips that are among the latest advanced memory semiconductor chips. Production in the new unit is planned to begin in 2028.
SK hynix is the other leading Korean semiconductor manufacturing company that is also working to ramp up its production of AI chips. The firm is in the advanced stages of starting manufacturing operations for M15X products like DRAM and other AI chips. The facility is located in Cheongju within the northern part of Chungcheong Province.
Analysts familiar with the ongoing works say once completed, the facility will be the equivalent of half a dozen M15X fabrication facilities (fabs). The progress so far attained increases the chance that one plant within the complex will be ready long before the previously announced completion timeline of 2027. This positions the company well to hit the ground running and supply chips at a time when the market appears to have an insatiable appetite for this hardware.
Data shows that the current DRAM market around the world is worth $100 billion and is forecast to grow to $170 billion by the end of 2026. It is therefore only natural that tech firms around the globe that have the capacity to make these products will ramp up their operations in order to address the needs of this massive market.
Countries around the world are currently involved in intense competition to dominate the AI industry, and these have largely been polarized between the U.S. and the countries aligned with it on the one hand, and China together with its perceived allies on the other. Some notable countries like Taiwan have tried to remain neutral in this tech war and they see their tech prowess as a defense against being compelled to support one side or the other.
One example that exemplifies this urge to remain neutral is Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM) that has maintained its key production facilities in Taiwan while establishing additional plants in the U.S. and other major markets.
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