Capital Economics: Korea's semiconductor boom could cool within two years

Odaily News: Marcel Thieliant, an economist at Capital Economics, stated that despite upside risks to South Korea's GDP growth in the short term, the semiconductor-driven economic boom could lose momentum over the next two years. The economist expects the U.S. AI investment boom to cool by 2028, which may prompt Korean chipmakers to begin cutting capital expenditures due to the highly cyclical nature of the semiconductor industry.

Thieliant noted that Samsung Electronics and SK Hynix have announced a combined investment plan totaling 800 trillion Korean won to build new chip manufacturing facilities in southwestern South Korea, though the specific investment timeline has not yet been disclosed. He pointed out that in 2023, SK Hynix cut capital expenditures by two-thirds as the post-pandemic electronics boom reversed. (Jinshi)