What Happened

Recently, interest in AI-related companies has been so fervent in financial markets that questions like 'Which is more promising, NVIDIA or Google?' are being raised. Notably, beyond the GPU and HBM (High Bandwidth Memory) markets, often called the 'gold mines' of the AI era, news has emerged that even older, general-purpose semiconductor factories, which were previously expected to see declining demand, are now operating at full capacity. This is attributed to a surge in overall semiconductor demand driven by expanded investment in AI data centers. The stock prices of general-purpose foundry companies are experiencing a synchronized rebound, with Taiwan's UMC stock rising 62% in a month and the U.S.'s GlobalFoundries increasing by 50%. Sony Group is also investing in AI, viewing it as a core driver for game evolution, indicating an expanding scope of AI technology application.

Why It Matters

This phenomenon suggests that the growth of the AI industry is not limited to specific high-end technologies but is driving up overall computing infrastructure demand. Previously, the AI semiconductor market was expected to focus on cutting-edge technologies such as NVIDIA's GPUs and Samsung Electronics' and SK Hynix's HBM. However, in reality, there has been an explosive increase in demand for general-purpose computing resources, specifically semiconductors produced using legacy processes, during the extensive data processing required for AI model training and inference, and in the process of building data centers. This implies that the AI era is impacting a much broader industrial ecosystem than anticipated, contributing not only to the top-line growth of related companies but also to their profitability improvement. Furthermore, it is evidence that AI technology is penetrating deeply into daily life, beyond mere industrial sectors, into areas like gaming and public services (AI+Open Data Challenge, AI education for women re-entering the workforce).

Impact on the Korean Market

As a key hub in the global semiconductor industry, Korea is one of the biggest beneficiaries of this surge in AI semiconductor demand. Samsung Electronics and SK Hynix are directly benefiting by leading the HBM market, and in the foundry sector, they can secure additional order opportunities due to the increased demand for general-purpose semiconductors. Additionally, semiconductor equipment and materials companies can expect improved performance due to increased production line capacity and higher utilization rates. The explosion of data in the AI era will accelerate investment in data center construction, which will have positive ripple effects on related infrastructure industries such as power, telecommunications, and construction. However, the acceleration of AI technology in automating the tasks of professionals (accountants, lawyers) and potentially bringing structural changes to the employment market remains a societal challenge.

Key Stock Analysis

  • Samsung Electronics (005930, stock): Expected to directly benefit from increased demand for memory semiconductors (HBM, DDR5, etc.) and foundry services (general-purpose and advanced). High expectations for performance improvement due to widespread demand expansion in the AI era. Positive
  • SK Hynix (000660, stock): As a leader in the HBM market, it is a key beneficiary of the explosive growth in AI semiconductor demand. High growth in the memory segment is expected to continue. Positive
  • Hanmi Semiconductor (042700, stock): Strong performance growth is expected due to increased demand for TC bonder equipment, essential for HBM production. It is recognized as a key equipment company within the AI semiconductor value chain. Positive
  • HPSP (403870, stock): Will benefit by contributing to the efficiency improvement of AI semiconductor production processes due to increased demand for high-pressure hydrogen annealing equipment. Positive
  • Leeno Industrial (058470, stock): Increased demand for non-memory semiconductor test sockets is expected. The importance of the testing process will be highlighted with the development and mass production of various AI chips. Positive
  • Copper (COPPER, commodity): Demand for copper, an essential raw material for semiconductor production and AI infrastructure construction such as data centers, is expected to increase. This could act as a factor for rising copper prices. Positive
  • Ethereum (ETH, crypto): While AI technology development may converge with blockchain technology in the long term, its direct short-term correlation with increased AI semiconductor demand is limited. Neutral

Future Scenarios

Optimistic Scenario: If AI technology develops faster than expected and AI services are successfully commercialized, semiconductor demand will continue its upward trend. A boom in the overall semiconductor industry is anticipated, especially as demand expands to include general-purpose semiconductors, allowing related Korean companies to maintain stock price upward momentum based on solid performance. The expansion of the AI ecosystem will also positively impact related software, service, and infrastructure companies.

Pessimistic Scenario: If the monetization of AI technology falls short of expectations, or if global economic recession slows down corporate AI investments, the growth in semiconductor demand could falter. Furthermore, intensified U.S.-China tech hegemony competition leading to supply chain instability or strengthened export regulations by specific countries could disrupt the production and exports of Korean semiconductor companies. Investors should closely monitor the earnings reports and guidance of AI-related companies, as well as supply and demand trends in the global semiconductor market. Additionally, government and corporate responses to AI's impact on the employment market will be important variables.