THE CENTRAL BANK OF KOREA EXPECTS AN AI-DRIVEN "SUPER-CYCLE" TO CONTINUE, REFUTING CONCERNS

ON 13 JULY, THE CENTRAL BANK OF KOREA RELEASED A REPORT ON MONDAY THAT THE GLOBAL SEMICONDUCTOR MARKET IS STILL OUT OF DEMAND AND THAT THE CURRENT “SUPERCYCLE” DRIVEN BY ARTIFICIAL INTELLIGENCE (AI) IS EXPECTED TO LAST FOR SOME TIME; BY DOING SO, THE BANK REFUTES INVESTORS’ FEARS THAT THE CHIP CYCLE HAS PEAKED. IN ITS REPORT, THE CENTRAL BANK OF KOREA STATES THAT “DESPITE A SIGNIFICANT SURGE IN SEMICONDUCTOR DEMAND DRIVEN BY INVESTMENTS IN ARTIFICIAL INTELLIGENCE INFRASTRUCTURE, THE PACE OF SUPPLY EXPANSION HAS BEEN RELATIVELY SLOW”. THE LINE ADDED THAT THE SEMICONDUCTOR CYCLE HAD NOT SHOWN SIGNS OF A SLOWDOWN. KIM XIAN