History does not offer the same opportunities to every nation. Some countries remain peripheral for centuries, while others decline after missing a single chance. However, there are rare instances where nations seize new opportunities at pivotal moments in history. South Korea is currently in such a situation.
In the 1960s and 1970s, South Korea laid the foundation for economic growth through steel and shipbuilding. In the 1980s and 1990s, it entered the global market with its electronics and automotive industries. Since the 2000s, South Korea has risen to developed nation status through semiconductors and information and communication technology (ICT). Now, it stands once again at a monumental civilizational turning point, this time with artificial intelligence (AI).
Many people perceive AI as merely a technology or service, often thinking of conversational AI like ChatGPT, image generation AI, or autonomous driving technology. However, AI is not just a technology; it represents a new industrial order and, more profoundly, a new operating system for civilization. Just as the steam engine replaced human muscle during the Industrial Revolution, electricity transformed factories and cities, and the internet revolutionized the flow of information, AI is reshaping human intellectual labor itself. The ways doctors diagnose, lawyers work, researchers conduct studies, and journalists gather information are all changing. AI is permeating factories, finance, defense, education, administration, and urban management. Humanity is on the brink of the most significant technological transition since the Industrial Revolution.
To understand AI, one crucial fact must be acknowledged: AI is not solely a software industry. It requires vast amounts of data to be stored and processed, necessitating immense computational power, memory, data centers, communication networks, and energy. While the world of AI may appear virtual, it is firmly rooted in the real economy. Ultimately, the essence of the AI revolution is a semiconductor revolution, and the core of the AI power struggle is a battle for semiconductor supremacy.
The trends in global capital markets in 2025 and 2026 illustrate this clearly. The leading companies on the U.S. stock market are no longer traditional manufacturing firms. AI-related companies like NVIDIA, Microsoft, Amazon, Alphabet, Meta, and Apple are at the forefront of the global capital market. Notably, NVIDIA has emerged as a symbol of the AI era. Once known primarily as a gaming graphics card company, it has now captured the attention of global investors. The reason is straightforward: NVIDIA's GPUs are the essential devices for AI computations.
However, many overlook a critical fact: no matter how advanced a GPU is, it cannot function without memory to store and supply data. Just as the human brain cannot think without memory, AI cannot exist without it. If the GPU is the brain of AI, then memory is its memory. This is where South Korea's strategic value comes into play.
South Korea currently stands at the center of the global memory semiconductor market. Samsung Electronics and SK Hynix are dominant players in the DRAM market and have achieved world-class competitiveness in the HBM (high-bandwidth memory) sector, which has emerged as a key product in the AI era. HBM is not just any memory; it is a critical component that determines the performance of AI servers. As AI models grow larger, the speed of data transfer between GPUs and memory becomes crucial, and ultimately, HBM performance dictates AI performance.
In fact, the scale of AI models is increasing explosively. Early generative AI models utilized billions of parameters, while the latest models reportedly use hundreds of billions, with some exceeding one trillion parameters. This is not merely a technological advancement; it reflects the need for AI to understand complex contexts like humans and retain long-term information. The ability to analyze documents with hundreds of thousands of characters, learn from vast databases, and maintain long-term conversations is becoming increasingly important. Consequently, the competitiveness of AI is shifting from computational power to memory capacity, leading to a dramatic rise in the value of memory semiconductors.
Recent forecasts from global market research firms and investment banks predict that the AI memory market will continue to grow at an annual rate of around 30%. Some projections suggest that the HBM market could reach approximately $100 billion by 2030. Currently, SK Hynix holds about 70% of the global HBM market share, while Samsung Electronics continues to make aggressive investments. As the AI revolution persists, South Korea's strategic importance will inevitably increase.
The growth of AI data centers is also noteworthy. Today, the AI industry has effectively become synonymous with the data center industry. Global tech giants like Microsoft, Amazon, Google, and Meta are investing astronomical sums into building AI infrastructure. Recent analyses indicate that the investment scale for top hyperscaler companies in AI infrastructure has expanded to hundreds of trillions of won annually. Each AI data center houses tens of thousands of GPUs, necessitating a corresponding vast amount of HBM. Securing semiconductor production capacity for AI servers has become a key element of global competitiveness.
This is not merely a growth in the IT industry; it is the construction of the infrastructure for a new industrial revolution. If railroads were the lifeblood of the Industrial Revolution in the 19th century, AI data centers are the lifeblood of digital civilization in the 21st century. Just as the countries that built railroads led the Industrial Revolution, those that establish AI infrastructure are likely to lead the new era.
Interestingly, the AI industry does not only benefit semiconductor companies. As AI data centers proliferate, electricity demand surges. Industries related to transformers, wiring, cooling systems, and power distribution also experience growth. A power supply system is needed to operate AI servers, leading to an expansion of energy infrastructure. This is why the global power industry is gaining renewed attention. AI thrives on semiconductors but also consumes vast amounts of electricity.
The International Energy Agency (IEA) and various research institutions forecast that power demand from data centers will increase sharply in the coming years. Some projections suggest that power demand from U.S. data centers could nearly double within a few years. This is why there are calls for countries to be both semiconductor powerhouses and energy powerhouses in the AI era.
South Korea occupies a uniquely advantageous position amid these changes. It boasts world-class memory semiconductor competitiveness and advanced manufacturing capabilities. The battery and energy infrastructure industries are also strong. Most importantly, it is already deeply embedded in the core supply chain of the AI revolution. While the U.S. leads in AI platforms, it relies on South Korea for memory. China is pushing for AI self-sufficiency but still faces limitations in advanced memory. Europe is ahead in AI regulation and ethical discussions but lacks semiconductor production capacity. Ultimately, South Korea is at the center of the key supply chain in the AI era.
The South Korean stock market reflects this reality. Recently, much of the rise in the KOSPI index has been driven by Samsung Electronics and SK Hynix. This is not merely an increase in specific companies' stock prices; it signifies a reassessment of the strategic value of South Korea's semiconductor industry by global capital. The semiconductor industry is not just a single company; it is a vast ecosystem. The materials, equipment, chemicals, logistics, finance, and research and development sectors all grow together. When a semiconductor factory is established, numerous partner companies and related industries move in tandem. Thus, semiconductors are not just an export industry but the growth engine of the entire South Korean economy.
Of course, there are points of caution. The world has experienced numerous technology bubbles in the past. There was the dot-com bubble, and excessive optimism about certain industries has existed. Therefore, AI cannot be viewed through rose-colored glasses. However, the key issue is not the bubble but the structure. Currently, AI is not a temporary trend; it is fundamentally changing industrial structures. Companies that do not adopt AI will struggle to maintain competitiveness, and nations that do not leverage AI will find it challenging to secure growth drivers. This trend is unlikely to end in the short term.
South Korea is now in a very special position. It has semiconductor technology, manufacturing competitiveness, and a highly educated workforce. Most importantly, it is already part of the core supply chain of the AI revolution. The question is whether it will stop here. Semiconductors are just the beginning. No matter how important semiconductors are, they alone cannot guarantee a nation's future. The true challenge lies in applying AI to real industries—transforming factories, automobiles, shipbuilding, logistics, and cities.
Looking back at history, great nations have always prepared for the next stage. Britain moved from coal to railroads, and the United States transitioned from automobiles to the internet. South Korea must also leap from semiconductors to the next stage. It needs to evolve from an AI semiconductor powerhouse to an AI industrial powerhouse, and from an AI industrial powerhouse to an AI civilization state.
What we are witnessing in the AI semiconductor supercycle is not merely an industrial boom. It could be a historical starting point for South Korea to once again enter the center of world history. The next phase of that starting point is physical AI and manufacturing AX. The moment AI moves beyond screen-based technology to influence real-world industries, factories, automobiles, robots, ports, and cities, a new industrial revolution will begin. South Korea's future may very well be determined at that juncture. And this is not just a matter of economic growth; it is a question of what kind of nation South Korea will become over the next century.
In the 1960s and 1970s, South Korea laid the foundation for economic growth through steel and shipbuilding. In the 1980s and 1990s, it entered the global market with its electronics and automotive industries. Since the 2000s, South Korea has risen to developed nation status through semiconductors and information and communication technology (ICT). Now, it stands once again at a monumental civilizational turning point, this time with artificial intelligence (AI).
Many people perceive AI as merely a technology or service, often thinking of conversational AI like ChatGPT, image generation AI, or autonomous driving technology. However, AI is not just a technology; it represents a new industrial order and, more profoundly, a new operating system for civilization. Just as the steam engine replaced human muscle during the Industrial Revolution, electricity transformed factories and cities, and the internet revolutionized the flow of information, AI is reshaping human intellectual labor itself. The ways doctors diagnose, lawyers work, researchers conduct studies, and journalists gather information are all changing. AI is permeating factories, finance, defense, education, administration, and urban management. Humanity is on the brink of the most significant technological transition since the Industrial Revolution.
To understand AI, one crucial fact must be acknowledged: AI is not solely a software industry. It requires vast amounts of data to be stored and processed, necessitating immense computational power, memory, data centers, communication networks, and energy. While the world of AI may appear virtual, it is firmly rooted in the real economy. Ultimately, the essence of the AI revolution is a semiconductor revolution, and the core of the AI power struggle is a battle for semiconductor supremacy.
The trends in global capital markets in 2025 and 2026 illustrate this clearly. The leading companies on the U.S. stock market are no longer traditional manufacturing firms. AI-related companies like NVIDIA, Microsoft, Amazon, Alphabet, Meta, and Apple are at the forefront of the global capital market. Notably, NVIDIA has emerged as a symbol of the AI era. Once known primarily as a gaming graphics card company, it has now captured the attention of global investors. The reason is straightforward: NVIDIA's GPUs are the essential devices for AI computations.
However, many overlook a critical fact: no matter how advanced a GPU is, it cannot function without memory to store and supply data. Just as the human brain cannot think without memory, AI cannot exist without it. If the GPU is the brain of AI, then memory is its memory. This is where South Korea's strategic value comes into play.
South Korea currently stands at the center of the global memory semiconductor market. Samsung Electronics and SK Hynix are dominant players in the DRAM market and have achieved world-class competitiveness in the HBM (high-bandwidth memory) sector, which has emerged as a key product in the AI era. HBM is not just any memory; it is a critical component that determines the performance of AI servers. As AI models grow larger, the speed of data transfer between GPUs and memory becomes crucial, and ultimately, HBM performance dictates AI performance.
In fact, the scale of AI models is increasing explosively. Early generative AI models utilized billions of parameters, while the latest models reportedly use hundreds of billions, with some exceeding one trillion parameters. This is not merely a technological advancement; it reflects the need for AI to understand complex contexts like humans and retain long-term information. The ability to analyze documents with hundreds of thousands of characters, learn from vast databases, and maintain long-term conversations is becoming increasingly important. Consequently, the competitiveness of AI is shifting from computational power to memory capacity, leading to a dramatic rise in the value of memory semiconductors.
Recent forecasts from global market research firms and investment banks predict that the AI memory market will continue to grow at an annual rate of around 30%. Some projections suggest that the HBM market could reach approximately $100 billion by 2030. Currently, SK Hynix holds about 70% of the global HBM market share, while Samsung Electronics continues to make aggressive investments. As the AI revolution persists, South Korea's strategic importance will inevitably increase.
The growth of AI data centers is also noteworthy. Today, the AI industry has effectively become synonymous with the data center industry. Global tech giants like Microsoft, Amazon, Google, and Meta are investing astronomical sums into building AI infrastructure. Recent analyses indicate that the investment scale for top hyperscaler companies in AI infrastructure has expanded to hundreds of trillions of won annually. Each AI data center houses tens of thousands of GPUs, necessitating a corresponding vast amount of HBM. Securing semiconductor production capacity for AI servers has become a key element of global competitiveness.
This is not merely a growth in the IT industry; it is the construction of the infrastructure for a new industrial revolution. If railroads were the lifeblood of the Industrial Revolution in the 19th century, AI data centers are the lifeblood of digital civilization in the 21st century. Just as the countries that built railroads led the Industrial Revolution, those that establish AI infrastructure are likely to lead the new era.
Interestingly, the AI industry does not only benefit semiconductor companies. As AI data centers proliferate, electricity demand surges. Industries related to transformers, wiring, cooling systems, and power distribution also experience growth. A power supply system is needed to operate AI servers, leading to an expansion of energy infrastructure. This is why the global power industry is gaining renewed attention. AI thrives on semiconductors but also consumes vast amounts of electricity.
The International Energy Agency (IEA) and various research institutions forecast that power demand from data centers will increase sharply in the coming years. Some projections suggest that power demand from U.S. data centers could nearly double within a few years. This is why there are calls for countries to be both semiconductor powerhouses and energy powerhouses in the AI era.
South Korea occupies a uniquely advantageous position amid these changes. It boasts world-class memory semiconductor competitiveness and advanced manufacturing capabilities. The battery and energy infrastructure industries are also strong. Most importantly, it is already deeply embedded in the core supply chain of the AI revolution. While the U.S. leads in AI platforms, it relies on South Korea for memory. China is pushing for AI self-sufficiency but still faces limitations in advanced memory. Europe is ahead in AI regulation and ethical discussions but lacks semiconductor production capacity. Ultimately, South Korea is at the center of the key supply chain in the AI era.
The South Korean stock market reflects this reality. Recently, much of the rise in the KOSPI index has been driven by Samsung Electronics and SK Hynix. This is not merely an increase in specific companies' stock prices; it signifies a reassessment of the strategic value of South Korea's semiconductor industry by global capital. The semiconductor industry is not just a single company; it is a vast ecosystem. The materials, equipment, chemicals, logistics, finance, and research and development sectors all grow together. When a semiconductor factory is established, numerous partner companies and related industries move in tandem. Thus, semiconductors are not just an export industry but the growth engine of the entire South Korean economy.
Of course, there are points of caution. The world has experienced numerous technology bubbles in the past. There was the dot-com bubble, and excessive optimism about certain industries has existed. Therefore, AI cannot be viewed through rose-colored glasses. However, the key issue is not the bubble but the structure. Currently, AI is not a temporary trend; it is fundamentally changing industrial structures. Companies that do not adopt AI will struggle to maintain competitiveness, and nations that do not leverage AI will find it challenging to secure growth drivers. This trend is unlikely to end in the short term.
South Korea is now in a very special position. It has semiconductor technology, manufacturing competitiveness, and a highly educated workforce. Most importantly, it is already part of the core supply chain of the AI revolution. The question is whether it will stop here. Semiconductors are just the beginning. No matter how important semiconductors are, they alone cannot guarantee a nation's future. The true challenge lies in applying AI to real industries—transforming factories, automobiles, shipbuilding, logistics, and cities.
Looking back at history, great nations have always prepared for the next stage. Britain moved from coal to railroads, and the United States transitioned from automobiles to the internet. South Korea must also leap from semiconductors to the next stage. It needs to evolve from an AI semiconductor powerhouse to an AI industrial powerhouse, and from an AI industrial powerhouse to an AI civilization state.
What we are witnessing in the AI semiconductor supercycle is not merely an industrial boom. It could be a historical starting point for South Korea to once again enter the center of world history. The next phase of that starting point is physical AI and manufacturing AX. The moment AI moves beyond screen-based technology to influence real-world industries, factories, automobiles, robots, ports, and cities, a new industrial revolution will begin. South Korea's future may very well be determined at that juncture. And this is not just a matter of economic growth; it is a question of what kind of nation South Korea will become over the next century.
* This article has been translated by AI.
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