Bank of Korea official forecasts rise in chip output next year

A Bank of Korea official expects South Korea’s chip output to climb next year, with high-bandwidth memory (HBM) production leading the way. One catch: chip prices are expected to keep rising, but at a slower pace. What the central bank is seeing The Bank of Korea has projected that the semiconductor expansion will continue into the first half of 2027. The driver is spending on AI infrastructure. Companies building out data centers need advanced memory, and HBM sits at the center of that shopping list. The BOK’s view is that demand for chips like HBM will keep outrunning supply, even as output grows. The reasons are practical. Making HBM is technically complex, and bringing new capacity online takes a long time. That supply-demand gap is what keeps pricing power with the chipmakers. The central bank expects that pricing power to persist. It also expects price increases to be more moderate than in earlier phases of the cycle. Locked contracts and slow-moving factories Samsung Electronics has locked in 80% of its planned 2027 memory output under long-term contracts. That figure includes 100% of its HBM production. When a manufacturer has effectively sold out a key product line before ...