The central bank said chip demand is being lifted by AI infrastructure spending while supply growth remains relatively slow, leaving the global market undersupplied and easing fears the cycle has peaked.
The Bank of Korea said the global semiconductor market is still undersupplied and that the current AI-driven "supercycle" is likely to continue for some time. In a Monday report, the central bank said demand for chips has jumped on AI infrastructure investment, while supply expansion has lagged, helping rebut investor concerns that the cycle has already peaked. The assessment points to a market still supported by tight supply-demand conditions as AI-related spending continues to drive orders.