South Korea Sees No Clear Sign of Contraction in AI Investment or Semiconductor Demand

South Korean semiconductor experts saw no clear warning that artificial intelligence investment or chip demand would contract, even as data-center regulatory concerns rattled markets after the U.S. midterm elections.

South Korea’s Ministry of Economy and Finance convened a meeting Friday, Nov. 6, to review conditions in the semiconductor industry and its demand outlook. Concerns about regulation of AI data centers had surfaced after the U.S. midterm elections, contributing to stock-market volatility.

Participants cited major AI companies’ investments already underway and their future plans, alongside demand they expect as agentic AI becomes more widespread. They said these factors leave medium- and long-term growth expectations for AI and semiconductors intact.

Despite financial-market concerns, the participants saw no clear signal that AI investment or semiconductor demand would contract. They also viewed expanding long-term supply contracts at South Korean chipmakers as a factor that should help keep demand stable in the near term.