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Intelligence for Better Decision Making
AI-Driven Memory Chip Demand Reshapes Global Semiconductor Supply and Spurs Chinese Expansion
Nov. 20, 2025 | Technology & InnovationRecent shifts in semiconductor investment reflect the impact of AI-driven demand and strategic capacity expansions worldwide.
**AI-driven demand for high-bandwidth memory (HBM) chips led Samsung and SK Hynix to reallocate production capacity from mainstream DRAM toward HBM, creating significant shortages in DRAM for mobile phones, PCs, and servers.**
As these manufacturers ramp up HBM output to support accelerating AI applications, DRAM supply constraints have emerged, pushing memory spot prices sharply higher and contributing to an industry phenomenon known as “chipflation.”
**Rising memory costs are driving up end-product prices across the tech sector.**
PC prices could climb by as much as 15% next year, while smartphone component expenditures are projected to increase by 5–7%. TrendForce analysts warn that these elevated costs may dampen consumer demand, potentially cutting smartphone production by 2% and laptop manufacturing by 2.4% in 2026. According to their estimates, low-margin, low-cost smartphones face the greatest risk.
**Major PC vendors already feel the impact.**
Dell’s memory procurement completion rate may fall to around 40%, raising the risk of delivery delays. In response, Morgan Stanley downgraded Dell’s stock outlook, and both Dell and HP suffered steep share price declines once they disclosed memory shortages and impending price hikes.
**Chinese smartphone manufacturers are encountering acute DRAM shortages and scrambling to secure supplies amid intense competition.**
In contrast, large technology companies such as Apple have largely insulated themselves by relying on long-term memory supply contracts. The scramble among Chinese OEMs has led to reduced orders for local foundries like SMIC.
**Domestic Chinese memory chipmakers are seizing these shortages to expand aggressively.**
Yangtze Memory Technologies Co. (YMTC) has launched government-supported investments to boost its NAND flash capacity, targeting the world’s fourth-largest producer position within two years. This push aligns with Beijing’s strategy of nurturing domestic semiconductor champions. Unlike Samsung and SK Hynix, which have signaled only modest capacity increases for DRAM and NAND, Chinese firms are pursuing more ambitious growth plans. As global memory demand continues to rise, these producers may capture additional market share. Samsung’s Xi’an NAND flash facility and SK Hynix’s Wuxi DRAM plant in China already supply substantial portions of their companies’ global output, and ongoing government subsidies and investments in domestic fabs should further strengthen China’s role in the global memory supply chain.
Samsung Accelerates 1c DRAM Production Expansion Amid Rising Global Demand
Nov. 20, 2025 | Technology & InnovationKorean chip makers are significantly expanding their DRAM production capabilities to address growing market demand.
**Samsung Electronics will ramp up its 10-nanometer-class 6th-generation DRAM (1c DRAM) output from 60,000 wafers per month at the end of 2025 to roughly 200,000 wafers per month by the end of 2026.**
The company plans to add 80,000 wafers by mid-2026 and another 60,000 wafers in the final quarter through process conversions in existing lines and fresh investments at its Pyeongtaek Plant 4 (P4).
**This enlarged 1c DRAM capacity will account for about one-third of Samsung’s current total DRAM production, which stands at 650,000–700,000 wafers per month.**
Samsung’s commitment reflects confidence in 1c DRAM technology and aims to alleviate a tight supply not only in high-bandwidth memory (HBM) but in mainstream DRAM—where buyers have begun pre-purchasing unproduced stock to secure future supply.
**Samsung’s 1c DRAM devices will feature circuit linewidths of 11 nanometers or less and incorporate multiple layers of extreme ultraviolet (EUV) lithography.**
The goal is to mass-produce next-generation DRAM that delivers both higher performance and lower cost.
**On November 16, Samsung unveiled a broader investment plan of 450 trillion won over five years to secure memory semiconductor capacity as artificial intelligence drives demand higher.**
The company intends to scale production proactively, enabling rapid responses to market shifts.
**This investment push also targets the restoration of Samsung’s position as the world’s top DRAM supplier, a title currently held by SK hynix following Samsung’s recent HBM supply and sales setbacks.**
Samsung representatives say they are reviewing various measures to meet surging demand but have not confirmed the precise allocation of additional funds.
Monitored Intelligence for South Korea - Nov. 21, 2025
News
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312
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21
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31
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Releases
0
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0
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0
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2
Think
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2
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0
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0
Social
Media
0
Business
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0
Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.
The goal is to provide intelligence that allows decision makers to avoid being blindsided by what they may have missed, while informing them to make better decisions as well.
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3
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4
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2
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Erudite Risk also includes operations categories so you can monitor the environment for better decision making. Everything is tied together--what happens in risk affects operations and what happens in the market impacts risk profiles.
We categorize key intelligence into one of 30 different operations intelligence categories.
Different roles and functions within the organization can monitor different key issue areas. HR may monitor employment, wages, regulations, labor and management relations, etc., while P&L leaders may monitor overall developing trends.
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29
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8
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SK지오센트릭, 에탄 본격 도입…NCC 경쟁력 강화
SK Geocentric fully introduces ethane… Strengthening NCC competitiveness
ZD Net Korea | Local Language | News | Nov. 21, 2025 | UndeterminedTech Development/Adoption
SK Geocentric is shifting away from a naphtha-centered feedstock structure by fully introducing ethane to enhance the competitiveness of its naphtha cracking plant (NCC). The company signed a strategic memorandum of understanding (MOU) with SK Gas to secure a stable ethane supply chain, improve feedstock economics, and advance the petrochemical industry's structure. The two firms plan to finalize the timing and volumes of ethane supply based on this agreement.
SK Geocentric aims to diversify its feedstock structure and improve process efficiency through ethane introduction, while SK Gas will manage procurement, transportation, price negotiations, and infrastructure development for stable ethane supply, especially in the North American region. Together, they plan an integrated supply chain system from import to consumption, ensuring price competitiveness and supply stability for feedstock.
Ethane offers lower price volatility and higher ethylene production efficiency compared to naphtha and is widely used by major petrochemical companies globally, driven by the expansion of North American shale gas production. Despite maritime transportation and terminal costs, ethane remains cost-competitive due to stable shale gas-based supply. SK Gas is developing ethane storage and handling terminals based on its LPG/LNG infrastructure to supply feedstock reliably to Ulsan petrochemical complex companies, including SK Geocentric.
SK Geocentric’s president Choi An-seop highlighted that the ethane collaboration with SK Gas will enhance NCC competitiveness and stabilize operations amid structural downturns in the petrochemical industry. SK Gas president Yoon Byung-seok emphasized ethane’s potential beyond feedstock, including as a next-generation energy source for hydrogen production and power generation, aiming to accelerate feedstock diversification and industry structural improvements in Korea.
반도체 개발 기간 4분의1로 줄인다...설계의 TSMC 노리는 세미파이브
Cut semiconductor development time to a quarter... SemiFive targets TSMC's design sector
Hankyung | Local Language | News | Nov. 21, 2025 | UndeterminedTech Development/Adoption
SemiFive, led by CEO Cho Myung-hyun, is revolutionizing semiconductor development by transforming from a traditional design house into a design platform company that standardizes and automates chip design. This shift aims to reduce development time to one-quarter and lower costs significantly, similar to how TSMC platformized manufacturing. SemiFive automates processes from specification writing to packaging and system software development, addressing increased demand for ASICs driven by the slowdown of Moore's Law and the rise of AI applications.
Founded in 2019, SemiFive initially served as a bridge between fabless semiconductor companies and foundries. It has since built a platform featuring reusable design IP and modular blocks like CPUs and high-speed interfaces that reduce design risk and accelerate time-to-market. Cho highlighted SemiFive's ability to finish projects faster and at half the cost compared to traditional approaches, aiming to cut personnel needs by two-thirds.
SemiFive's business model diverges from typical design houses by managing the entire production process, from foundry orders to testing, and generating revenue through chip sales. The company claims a competitive lead of over five years due to its early start and accumulated intellectual property. It has attracted 240 billion won in investments from prominent global and domestic funds, employs over 400 researchers worldwide, and reported a 56.8% increase in sales last year, with plans to list on the KOSDAQ market within the year.
Cho envisions a future where design platforms enable customers to lead chip specifications while the platform handles design and mass production, establishing a clear division of labor. SemiFive aims to become the TSMC equivalent in semiconductor design.
Naver to confirm plan to acquire leading crypto exchange operator Dunamu at board meeting next week: sources
Yonhap | English | News | Nov. 21, 2025 | UndeterminedMergers & Acquisitions
Naver Corp. is expected to confirm its plan to acquire Dunamu Inc., the operator of South Korea's largest cryptocurrency exchange, Upbit, at a board meeting scheduled for next week. Dunamu is also set to hold a board meeting on November 26 to finalize the acquisition details. Naver aims to complete the deal through a comprehensive stock swap via its fintech subsidiary, Naver Financial, making Dunamu a wholly owned subsidiary.
The acquisition is part of Naver's strategy to expand its digital finance business. The two companies plan to launch a won-backed stablecoin project and other digital finance initiatives that could significantly impact South Korea's digital finance market once integrated. After board approvals, the acquisition must pass a shareholders' meeting before formal integration begins.
Post-acquisition, Dunamu Chairman Song Chi-hyung is expected to become the largest shareholder in Naver Financial, with Naver as the second-largest shareholder. Industry insiders estimate the share swap ratio between Naver and Dunamu to be approximately 1 to 3 or 1 to 4. Naver operates South Korea’s leading internet portal, while Upbit ranks as the country’s top and the world’s fourth-largest crypto exchange by trading volume.
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