Seoul [Korea], July 13 (ANI): Global memory chipmakers -- Samsung Electronics, SK hynix and Micron Technology -- are accelerating capacity expansion to capitalise on the artificial intelligence (AI) boom, as demand for high-bandwidth memory chips used in AI servers continues to exceed supply, as per Korea Herald.

Citing World Semiconductor Trade Statistics, the report noted that the global semiconductor market will likely grow 90 per cent this year to USD 1.51 trillion. Additionally, the memory market alone is forecast to surge 250 per cent to USD 803.9 billion.

'Combined industry investment this year is expected to reach about 200 trillion won ($129 billion), led by the top three memory makers,' it said.

These tech giants are increasing investment in new fabrication plants, advanced packaging and chipmaking equipment to secure capacity before additional supply comes online, the report added.

Samsung is expanding its memory manufacturing capacity through new projects in Pyeongtaek and Yongin in Gyeonggi Province, as well as its integrated semiconductor hub in Gwangju-South Jeolla. Meanwhile, SK hynix plans to deploy the USD 26.5 billion raised through its Nasdaq listing to increase wafer production capacity and strengthen its advanced chip packaging capabilities.

Following SK hynix's Nasdaq debut on Friday, SK Group Chairman Chey Tae-won said, 'We announced that we would double our production capacity within five years, but every customer says that will not be enough,' Korea Herald noted.

At the same time, Micron is also stepping up investments as the United States intensifies efforts to expand domestic semiconductor manufacturing. The company has announced plans to invest more than USD 250 billion in the US by 2035, including the construction of new memory fabrication plants in New York and Idaho, along with an expansion of its existing facility in Virginia.

However, the report highlighted, 'Despite concerns that the AI boom may be nearing a peak, industry executives and analysts expect supplies of high-bandwidth memory and conventional DRAM to remain tight for years.'

As per analysts, the outlook for memory makers will depend 'less on short-term pricing than on how quickly they can add capacity,' the report said.

Park Seung-young, head of portfolio strategy at Hanwha Investment & Securities, on 3PROTV said, 'Supply matters more than demand in commodity memory,' adding, 'The key question is how fast capacity can grow.' (ANI)