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AI-Driven Memory Chip Demand Reshapes Global Semiconductor Supply and Spurs Chinese Expansion
Nov. 20, 2025 | Technology & Innovation

Recent 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 & Innovation

Korean 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. 20, 2025


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FM Cho calls nuclear-free Korean Peninsula 'imperative' never to be abandoned

Yonhap | English | News | Nov. 20, 2025 | North Korea

Foreign Minister Cho Hyun emphasized that achieving a nuclear-free Korean Peninsula is an "imperative" that must never be abandoned. In a keynote speech delivered at the Seoul Diplomacy Forum 2025, Cho reaffirmed South Korea's commitment to preventing the peninsula from becoming a flashpoint of armed conflict and outlined the government's goal of phased denuclearization—beginning with halting North Korea's nuclear build-up, followed by reduction and eventual dismantlement.

Cho highlighted the need to strengthen South Korea’s defense capabilities against North Korean threats while simultaneously pursuing efforts to prevent unintended conflicts, reduce tensions, and restore dialogue with Pyongyang. He acknowledged the increasingly complex strategic environment caused by heightened geopolitical and geoeconomic competition, as well as growing nuclear and missile threats from North Korea.

Additionally, Cho stressed the importance of promoting peaceful coexistence beyond the Korean Peninsula and urged efforts to avoid the solidification of confrontational blocs in the region. He pledged to advance trilateral cooperation among South Korea, the United States, and Japan, as well as among South Korea, China, and Japan, in pursuit of regional stability.

Daejang-dong dispute threatens to become political crisis

Korea Herald | English | News | Nov. 20, 2025 | Geopolitical Conflict and Disputes

The decision by South Korea's prosecution to drop its appeal in the high-profile Daejang-dong corruption case has escalated into a significant political and judicial crisis. The opposition conservative People Power Party accuses the Justice Ministry of interfering with judicial independence and protecting President Lee Jae Myung, who has been politically shadowed by the case for years. Party leaders held rallies demanding the resignation of Justice Minister Jung Sung-ho and Vice Minister Lee Jin-su, accusing them of pressuring prosecutors and trivializing wrongdoing that caused substantial taxpayer losses.

Internal dissent within the prosecution followed the appeal withdrawal. The head of the Seoul Central District Prosecutors’ Office, Jung Jin-woo, and several other senior prosecutors resigned, protesting the acting Prosecutor General Noh Man-seok’s handling of the decision. Noh admitted consulting Justice Minister Jung before finalizing the appeal drop and resigned days later. Additional resignations among prosecutors are anticipated, while the Justice Ministry reportedly plans to reassign protesting prosecutors to lower-ranking positions, a move seen as punitive and unprecedented within the prosecution service.

The scandal dates back to a 2015 redevelopment project in Daejang-dong, Seongnam, where a disproportionate share of profits was awarded to politically connected private firms, despite minimal financial contribution. Prosecutors claimed the municipal developer was entitled to significantly higher profits. Several individuals received prison sentences for breach of trust. However, the court ruled against recognizing the charges as aggravated economic crimes, and by dropping the appeal, prosecutors lost the chance to challenge this, limiting the potential legal consequences. This ruling narrows liability for defendants, including President Lee, particularly affecting related cases after his term.

'해킹 은폐 의혹' 휘말린 KT, 경찰 압수수색 돌입

KT embroiled in hacking cover-up allegations, police launch search and seizure operation

ET News | Local Language | News | Nov. 20, 2025 | Cyber Attacks and Data Loss

The Gyeonggi Nambu Provincial Police Agency’s Anti-Corruption and Economic Crime Investigation Unit conducted search-and-seizure operations on November 19, 2025, at KT’s Pangyo and Bangbae buildings. These offices house KT’s IT division and its IT services subsidiary, KT DS. About 20 investigators are examining offices to determine if KT intentionally disposed of servers to conceal evidence related to a hacking incident.

Suspicions arose after the U.S. security outlet Prack reported in August that KT server certificates may have been leaked. KT initially claimed that discarded servers were outdated equipment related to a remote consultation system and had been removed during a cloud transition. However, backup logs indicating otherwise surfaced. A joint investigation team from the Ministry of Science and ICT accused KT of obstructing the government investigation by discarding servers showing certificate leakage and hiding backup logs, prompting a request for a formal investigation.

Police reportedly filed charges against KT’s Chief Information Security Officer, Hwang Tae-seon, for obstruction of official duties by deception. Hwang is under scrutiny and may be a target in the ongoing searches, which could also expand to KT’s Gwanghwamun West building due to recent IT team relocations. KT has stated it is currently assessing the situation.

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