South Korea Semiconductor Boom May Cool Within Two Years

Capital Economics warns SK chip sector growth could stall by 2028 as US AI capex slows, citing historical volatility in manufacturer spending.

Woofun AI notes that Capital Economics economist Marcel Thieliant anticipates South Korea's semiconductor-driven prosperity may lose momentum within the next two years, despite short-term GDP upside risks. The forecast links a potential cooling of US AI investment by 2028 to reduced capital expenditures by South Korean chipmakers, reflecting the industry's cyclical nature. While Samsung Electronics and SK Hynix have pledged 800 trillion won for new southwestern plants, specific timelines remain undisclosed. Thieliant highlighted that SK Hynix previously slashed capital expenditures by two-thirds in 2023 when post-pandemic electronics demand reversed.