"The Semiconductor Boom Will Not Cool Off Suddenly" Long-Term Growth Gains Weight Alongside AI

[Financial News] As semiconductor stocks have recently plunged and investor sentiment has weakened sharply, government and business leaders are increasingly saying that the long-term growth potential of memory semiconductors remains intact amid the spread of Artificial Intelligence (AI). On the 18th, Park Hong-keun, Minister of Planning and Budget, appeared on the YouTube channel Kimjagga TV and addressed concerns that the semiconductor industry may be peaking and then slowing down. He said, "The government does not see the semiconductor boom ending suddenly."
Park said the role of semiconductors, a core component, will become even more important as the AI ecosystem expands. He explained, "To make AI work, semiconductors that serve as the brain, along with foundational industries such as robots and data centers, must grow together." He added, "As countries around the world race to build AI infrastructure, related demand will continue to expand."
This outlook also aligns with the view recently presented by SK Group Chairman Chey Tae-won.
At the Korea Chamber of Commerce and Industry (KCCI) summer forum on the 17th, Chey said, "Memory is an industry that will remain essential, so if you look at it over time, it will ultimately trend upward." He added, "No one can know what the stock price will be next month, but rather than repeatedly trading in the short term, holding for the long term is the way to protect assets."
He went on to say, "AI is like a four-year-old child that has only just begun to grow," and predicted, "As AI matures, it will need more memory, and related demand will inevitably rise exponentially in the years ahead."
Meanwhile, Park said this year's supplementary budget has helped lift economic growth by about 0.2 to 0.3 percentage point. He added that it "formed the basis for this year's 3% growth outlook."
He said, "Korea's growth potential remains strong." He added, "If we turn the current crisis into an opportunity for a new leap forward, it would be entirely possible to move beyond the global top 10 and reach the top 7, or even top 3, in competitiveness."
Although the semiconductor sector has recently undergone a short-term correction and market concerns have grown, the government and industry appear to be building consensus that demand for memory semiconductors, a key infrastructure for the AI era, will expand structurally.

vrdw88@fnnews.com Kang Jung-mo Reporter