Semiconductor Boom to Continue Through 2027 Amid Surging AI Demand

The semiconductor boom is expected to continue until 2027. An analysis indicates that the semiconductor market will maintain its positive momentum, driven by the explosive increase in demand from the artificial intelligence (AI) market.

In particular, as demand for memory semiconductors used in AI servers grows, the performance of major domestic memory semiconductor companies is expected to improve further. iM Securities has revised its forecast for DRAM semiconductor demand growth this year from 26.2% to 28.0%. This demand increase has led to upward revisions in earnings forecasts for major domestic memory chipmakers. Contract prices for DRAM and NAND in the third quarter are projected to rise by 15% compared to the previous quarter. Samsung Electronics' foundry division is reportedly likely to reach its break-even point (BEP) in the third quarter. SK Hynix is expected to achieve record-high operating profit and return on equity (ROE) this year.

There are also medium-to-long-term supply and demand variables. The capital expenditure (CAPEX) burden on big tech companies is also a medium-to-long-term factor. One analysis suggests that the proportion of memory purchases within big tech's capital expenditure has risen to 37% due to the surge in memory semiconductor prices. The market could face a correction period if the profitability of paid AI services is not proven.