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Orient Semiconductor Electronics (OSE) said that strong memory market demand is lifting its outlook and expanding its role in the memory supply chain, while also strengthening its importance in surface-mount technology (SMT) for AI server boards with major US clients.

Surging demand for AI data center infrastructure has already pushed the memory market into a structural shortage. Now, Samsung Electronics' labor dispute is adding another layer of uncertainty for DRAM and NAND Flash prices.

The global semiconductor industry has been focused on a memory supercycle, with some forecasts suggesting the upturn could last until 2030. However, Kye-hyun Kyung, former head of Samsung Electronics' Device Solutions (DS) division and currently a standing advisor to Samsung, has cautioned against overly optimistic sentiment in the memory market.

SK Hynix is accelerating construction at its Yongin Semiconductor Cluster, as a tightening memory market pushes South Korea's top chipmakers to move faster on long-term capacity plans.

Samsung Electronics' escalating labor dispute is adding fresh uncertainty to the memory market, with spot prices moving higher as South Korea's government pushes management and labor to resume talks ahead of a planned 18-day strike.

The memory market is entering a new growth cycle as artificial intelligence demand reshapes supply and pricing, with DRAM prices still rising 10% to 20% a month, according to Nicky Lu, chairman of Etron Technology.

Flexible printed circuit board (FPCB) manufacturer Flexium Interconnect said during an earnings call on May 8 that, looking ahead, imbalances in memory market supply and demand will impact the industry. Aside from major US customers with stronger pricing power, the mass production and shipment schedules for new products such as smart glasses and artificial intelligence (AI) servers have been delay

The economics of the global memory market are being fundamentally rewritten by the AI supercycle and catastrophic Middle East supply disruptions.