In detail
- $590 billion total investment: 800 trillion won for four new factories in South Korea's southwest, 81 trillion won for a packaging center, 30 trillion won over 15 years for next-generation chips.
- Memory prices rising sharply: Jefferies forecasts 40–50% price increase Q3 2026, another 30–40% Q4 2026, 40–45% in 2027; relief not expected until 2028.
- Market dominance: Samsung and SK Hynix control nearly 80% of the global high-bandwidth memory chip market, essential for AI workloads.
- Downstream impact: Rising memory costs already driving price hikes in consumer electronics (e.g., Apple raising Mac and MacBook prices).
Why it matters
German SMEs reliant on chips or electronic components face rising procurement costs over the next two years. Supply scarcity and price volatility demand early planning and potentially higher inventory buffers.
For you Review your chip and memory sourcing for 2026–2027: lock in long-term contracts now or build inventory before prices climb further.