South Korea's mega semiconductor investments and memory market outlook (with Shery Ahn)

Samsung and SK Hynix expected to announce massive investments in HBM and DRAM to meet strong AI-driven demand. Micron's strong earnings and long-term contracts suggest even in a downturn, memory makers can achieve sufficient profit. Capacity expansion is urgent to avoid shortages in 2028.

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South Korea's mega semiconductor investments and memory market outlook (with Shery Ahn)

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Strong AI-driven demand for memory supports tech sector, but supply constraints and need for massive capex create uncertainty.

South Korea to unveil three mega projects; Samsung and SK Group heads will announce investment plans.

Shery Ahn
Masahiro Wakasugi

Micron reported strong earnings with 85% gross margin. Industry consensus is that 2027 is a shortage year; DRAM makers need to accelerate capex this year and next to catch up with demand by 2028. Samsung and SK Hynix could announce big investments for HBM and conventional DRAM due to AI inference adoption.

Demand is so strong that without accelerated capex, we may see a shortage even in 2028.
Does that mean the next earnings season should be another strong one?

Shery Ahn
Masahiro Wakasugi

Yes, Micron's earnings period (March-April-May) suggests SK Hynix could have similar profitability in Q2.
Where should priority lie in terms of demand and supply constraints?

Shery Ahn
Masahiro Wakasugi

HBM for AI should be the priority, followed by conventional DRAM, then NAND flash. DRAM and flash memory are sold out this year and next, so capacity expansion must be accelerated now to avoid shortages in 2028.

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