Samsung, SK Hynix shares fall as investors brace for reported $1.3 trillion spending plans - CNBC

South Korea unveiled a $1.3 trillion semiconductor and artificial intelligence infrastructure investment plan aimed at strengthening its global technology leadership. The initiative includes building ... Read original →

South Korea’s $1.3 trillion semiconductor and AI infrastructure push reveals strategic anxiety over its position in advanced nodes and HBM, not just ambition. Technologically, it will accelerate domestic EUV adoption, sub-3nm scaling, and 2.5D/3D packaging—but upstream reliance on U.S., Japanese, and Dutch equipment remains a critical vulnerability. Regulatory risks loom large: massive state subsidies could trigger WTO scrutiny and clash with U.S. CHIPS Act compliance demands, raising operational costs for Samsung and SK Hynix globally. In response, TSMC (Taiwan, China) will likely counter with CoWoS capacity expansion and AI-optimized processes, while Micron tightens HBM3E ecosystem partnerships. Over the next 12–24 months, without rapid yield ramp and long-term customer commitments, this spending spree risks morphing into a classic overcapacity trap—especially as global AI capex growth shows signs of plateauing.