Korean Chip Inventories Plummet Amid AI Demand Surge

Recent data from Korea's Statistical Office highlights a significant reduction in semiconductor inventories, marking the fastest decrease since 2009. This trend reflects robust demand for high-performance memory chips utilized in artificial intelligence development.

Inventories dropped by 42.6% compared to the same period last year, surpassing July's 34.3% decline. Concurrently, production and shipments increased by 10.3% and 16.1%, respectively, suggesting a continued boom throughout much of the third quarter.

This trend may bolster the view that the chip rally, a critical driver of Korea's trade-dependent economy, still has room for growth this year. Leading companies like Samsung Electronics and SK Hynix have been among the top performers.

Korea is set to release September export data, including semiconductor shipment figures. Since May, there has been a slowdown in chip export growth, raising concerns about the duration of this boom.

Additionally, Korea's overall industrial output in August exceeded economists' predictions, growing by 3.8% year-on-year, higher than the anticipated 1.9%.