Capital Economics economist Marcel Thieliant said that while South Korea’s GDP faces near-term upside risks, the semiconductor-driven boom could lose momentum within two years. He expects the US AI investment surge to cool by 2028, which could prompt Korean chipmakers to pare capital spending given the sector’s cyclicality. Samsung Electronics and SK Hynix have announced a combined investment plan totaling 800 trillion won to build new fabs in southwest South Korea, but provided no timetable. Th

Capital Economics economist Marcel Thieliant said that while South Korea’s GDP faces near-term upside risks, the semiconductor-driven boom could lose momentum within two years. He expects the US AI investment surge to cool by 2028, which could prompt Korean chipmakers to pare capital spending given the sector’s cyclicality. Samsung Electronics and SK Hynix have announced a combined investment plan totaling 800 trillion won to build new fabs in southwest South Korea, but provided no timetable. Thieliant noted SK Hynix cut capex by two-thirds in 2023 after the post-pandemic electronics upswing reversed.