Semiconductor experts say AI, chip growth outlook remains intact

Experts said the medium- to long-term growth outlook for the AI and semiconductor industries remains intact, despite concerns in financial markets surrounding the AI sector.

The Ministry of Economy and Finance said it held a semiconductor expert roundtable Friday at Government Complex Seoul, chaired by Vice Minister for International Affairs Kang Ki-ryong, to review AI industry policy trends in major countries, the state of the global semiconductor industry and key risk factors. Industry representatives, research institutes and specialists attended the meeting.

Participants said that, taking into account the scale and pace of major AI companies' investment plans and the potential for expanded semiconductor demand driven by the spread of agentic AI, the medium- to long-term growth outlook for the AI and semiconductor industries remains intact.

They said that while some concerns have been raised in financial markets, no clear signals of a contraction in AI investment or semiconductor demand have yet emerged. Factoring in the expansion of long-term supply agreements by domestic semiconductor companies, they projected that the demand base for chips would remain stable for now.

The government said it would closely monitor the possibility that policy uncertainty surrounding the AI industry following the US midterm elections could affect domestic and international financial markets and the real economy.

"Uncertainty over AI industry policy following the US midterm elections may persist for some time and could affect financial markets at home and abroad as well as the real economy," Kang said. "We will maintain close communication with semiconductor experts and carefully monitor developments in the global AI and semiconductor industries and AI policy trends in major countries."